Which of the Following Does NOT Occur When the Price

question 50

Multiple Choice

Which of the following does NOT occur when the price of a good increases?

• A) The good becomes more expensive relative to all other goods.
• B) The consumer's purchasing power increases.
• C) Consumers shift their purchases away from the more expensive good.
• D) The consumer is effectively poorer than before the increase in price.

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Definitions:

Financial Plan

A comprehensive document detailing an individual's or organization's long-term financial goals and the strategies to achieve them.

Financial Planning

The process of determining how an individual or organization will afford to achieve its strategic goals and objectives.

Debt Capacity

The ability to borrow to increase firm value.

Financial Planning

A comprehensive evaluation and strategy development for an individual's or organization’s financial future, including investments, insurance, savings, and budget management.