Which of the Following Would Not Cause an Increase in the Demand

question 35

Multiple Choice

Which of the following would not cause an increase in the demand for cheese?

• A)​a decrease in the price of crackers, which are consumed with cheese
• B)​an increase in the income of cheese consumers, assuming that cheese is a normal good
• C)​an increase in the population
• D)​a technological advance that makes it cheaper to produce cheese

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Definitions:

Price Ceilings

Regulatory measures that set a maximum price that can be charged for a product or service, intended to protect consumers from excessive pricing.

Price Floors

Legally established minimum prices for goods or services, aimed at preventing prices from falling too low, often used in agriculture.

Market Failure

A situation where the allocation of goods and services by a free market is not efficient, often leading to negative externalities or a lack of public goods.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a product for which each seller offers an identical product.