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When the Price of a Good Rises, Consumers Reduce the Quantity

Question 43

Multiple Choice

When the price of a good rises, consumers reduce the quantity of the good demanded in a given time period because:


A) substitute goods become relatively cheaper.
B) consumers' purchasing power increases, so they buy other goods.
C) consumers' preferences are not the same for higher priced goods as they are for lower priced items.
D) substitute goods become relatively more expensive.

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