If Tastes for a Good Increased and the Price of a Substitute

question 145

Multiple Choice

If tastes for a good increased and the price of a substitute good decreased at the same time, as a result:

• A)prices would rise.
• B)prices would fall.
• C)larger quantities to be exchanged.
• D)smaller quantities to be exchanged.
• E)we would not know which direction either prices or quantities exchanged would be altered without more information.

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Definitions:

Thought processes

The mental activities involved in understanding, reasoning, problem-solving, and decision-making.

Horizontal décalage

A concept in Piaget's theory referring to the observation that children can acquire similar cognitive skills at different times across different domains.

Multitasking

Cognitive processes involving attending and responding to multiple sources of information simultaneously.

Secular trend

A long-term pattern or trend that can be observed over several generations or periods.