Which of the Following Would Cause a Decrease in Both

question 195

Multiple Choice

Which of the following would cause a decrease in both the price and quantity of a good exchanged?

• A)A strike by production workers in the industry.
• B)A subsidy to the industry from the government.
• C)A decrease in advertising expenditures by the industry.
• D)A decrease in the price of a complement good.
• E)None of the above would cause a decrease in both the price and quantity of a good exchanged.

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Definitions:

Property Taxes

Taxes assessed on real estate by the local government, based on the property's value.

Percent Increase

The percentage by which a quantity grows over a specific period of time.

Mortgage

A loan used to purchase a property, secured by the real estate itself, typically paid back over a long term with interest.

Interest

The charge for borrowing money, typically expressed as an annual percentage rate.