Which Would Best Explain a Decrease in Both the Price

question 167

Multiple Choice

Which would best explain a decrease in both the price and the quantity of a product over a period of time?

• A) A decrease in people's incomes, and the product is an inferior good
• B) A long strike by workers who make the product
• C) A decrease in the price of a substitute good
• D) A technological improvement in production methods

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Definitions:

Offer And Acceptance

Fundamental concepts in contract law which determine when an agreement exists between two parties. An offer is a proposal while acceptance is the agreement to that proposal.

Negotiability

The quality of a financial instrument that allows it to be transferred or assigned from one party to another with ease.

Unconditional Promise

A commitment to act or refrain from acting in a certain manner that does not rely on any conditions or occurrences for its fulfillment.

IOU

An informal document that acknowledges a debt owed by one party to another, but not necessarily specifying repayment terms.