When the price level in an economy increases, the quantity of output demanded in the economy:
A)falls.
B)increases.
C)stays constant.
D)does not change unless the quantity of output supplied changes as well.

Question

Quizplus · Accepted Answer

When the price level in an economy increases, people can afford to purchase less, and thus the quantity of output demanded in the economy falls.

When the Price Level in an Economy Increases, the Quantity