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An Increase in the Price of a Product Will Reduce

Question 20

Multiple Choice

An increase in the price of a product will reduce the amount of it purchased because


A) the higher price will signal to consumers that the good is of low quality.
B) the higher price means that real incomes have risen.
C) consumers will substitute other products for the one whose price has risen.
D) consumers substitute relatively high-priced for relatively low-priced products.

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