When the Relative Price of a Good Increases,consumers Respond by Buying

question 152

Multiple Choice

When the relative price of a good increases,consumers respond by buying

• A)a larger quantity of that good and a larger quantity of substitutes for that good.
• B)a larger quantity of that good and a smaller quantity of substitutes for that good.
• C)a smaller quantity of that good and a larger quantity of substitutes for that good.
• D)a smaller quantity of that good and a smaller quantity of substitutes for that good.

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Definitions:

Expenditure

The total amount of money spent by individuals, organizations, or governments on goods and services within a specific period.

Concierge Company

A service-oriented business providing personalized services to clients, such as making reservations, arranging travel, and other personal requests.

Everyday Services

Services that are used by consumers on a daily basis, such as transportation, banking, and communications.

Tangible Goods

Physical items that can be seen, touched, and possessed, as opposed to services or digital goods.