The saying "the lower the price, the better" may not always be correct for an economy's public interest because
A)people should have to pay for what they want.
B)people will overuse something they perceive as being cheaper than the utility they receive for it.
C)the government can no longer afford to provide all the goods and services it provides because it is slowly going broke.
D)cheaper prices will make people buy less of other things.

Question

Quizplus · Accepted Answer

While cheaper prices may seem beneficial for consumers, it can lead to overconsumption of goods and services that may have negative externalities on the economy as a whole. This can include increased pollution or depletion of resources. Additionally, cheaper prices may lead to lower profits for businesses, making it harder for them to invest in research and development or pay their workers a higher wage. Therefore, simply aiming for the lowest possible prices may not always be in the public interest.

The Saying "The Lower the Price, the Better" May Not