A Shift in the Consumer's Demand for a Good X

question 75

Multiple Choice

A shift in the consumer's demand for a good X cannot result from a change in the:

• A)price of a substitute for good X.
• B)price of X.
• C)consumer's taste.
• D)consumer's income.

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Definitions:

Absolute Advantage

The capacity of an entity to manufacture a product or provide a service more effectively than its rivals, by utilizing fewer resources.

Comparative Advantage

A principle in economics that asserts a country's ability to produce a good at a lower opportunity cost compared to another country, fostering global trade efficiency.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, a fundamental concept in economics that emphasizes the potential benefits that are lost when choosing one option over another.

Comparative Advantage

The ability of a party to produce a particular good or service at a lower marginal and opportunity cost over another.