Which of the Following Explains Why the Quantity of a Good

question 75

Multiple Choice

Which of the following explains why the quantity of a good demanded decreases when its price increases?

• A)Consumer preferences change when the price of a good changes.
• B)The nominal income of consumers falls when the price of a good increases.
• C)Substitutes become relatively cheaper when the price of a good increases.
• D)Complements become relatively cheaper when the price of a good increases.
• E)None of the above provides a reasonable explanation.

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Definitions:

Bottom-up Processing

An approach whereby the brain processes information from specific features to higher-level concepts, beginning with sensory input.

Sole Basis

The single or only reason for a decision, action, or conclusion without consideration of alternative factors.

Thought Processes

The mental operations involved in the perception, understanding, and reasoning which underlie a person's ability to think and make decisions.

Language-like

Pertaining to structures, sequences, or processes that resemble or mimic aspects of linguistic ability, such as syntax and semantics, without being actual language.