When the Price of a Good Decreases

question 57

Multiple Choice

When the price of a good decreases,

• A) The good becomes less expensive relative to other goods and the consumer's purchasing power increases
• B) The good becomes less expensive relative to other goods and the consumer's purchasing power decreases
• C) The good becomes more expensive relative to other goods and the consumer's purchasing power increases
• D) The good becomes more expensive relative to other goods and the consumer's purchasing power decreases

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Definitions:

Business

Individuals or organizations who try to earn a profit by providing products that satisfy people’s needs.