If an Economist Says "The Higher the Price of Oranges,the

question 149

Multiple Choice

If an economist says "the higher the price of oranges,the fewer oranges individuals will buy,ceteris paribus," this means that

• A) individuals don't like high-priced oranges.
• B) as the price of oranges rises,individuals' preferences change and they no longer like oranges as much as they once did.
• C) as the price of oranges rises,individuals' preferences do not change,nor does anything else,but individuals buy fewer oranges in response to the higher price of oranges.
• D) the higher the price of oranges,the fewer oranges individuals will buy,assuming that people have economic motives.

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Definitions:

MC (Marginal Cost)

Expenses incurred from making one more unit of a product or service.

Break-Even

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and the business or investment is self-sustaining.

Maximize Profits

A strategy or goal where a firm or individual seeks to achieve the highest possible profit from its operations.

Peak Efficiency

The state of operation in which a system or process achieves its maximum output with the lowest input, often ideal in terms of productivity.