Price increases will ________ a household's choice set.
A) increase
B) decrease
C) not change
D) sometimes increase and other times decrease

Name: Price increases will ________ a household's choice set. A) increase B) decrease C) not change D) sometimes increase and other times decrease
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Question

Quizplus · Accepted Answer

Price increases will decrease a household's choice set because as prices go up, the household can afford fewer goods and services with their available income, thus reducing the number of options they can choose from.

Price Increases Will ________ a Household's Choice Set