An Increase in the Price of a Good Would

question 8

Multiple Choice

An increase in the price of a good would

• A)increase the supply of the good.
• B)increase the amount purchased by buyers.
• C)give producers an incentive to produce more.
• D)decrease both the quantity demanded of the good and the quantity supplied of the good.

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Definitions:

Budget Constraint

The limits imposed on household choices by income, wealth, and product prices, affecting the combination of goods and services they can afford.

Point D

A reference to a specific point on a graph or chart, often used to denote a particular set of conditions or coordinates in economic analysis.

Available Option

Choices or alternatives that are accessible and can be chosen in a decision-making process.

Price

Price refers to the amount of money expected, required, or given in payment for something.