When consumers shift away from relatively higher price goods and services in favor of those that are less expensive, this is known as the
A. principle of substitution.
B. principle of increasing opportunity costs.
C. principle of supply.
D. principle of utility.
Answer: A
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From a supply perspective, what impact would an increase in the price of motorcycles have on the market for motorcycles?
What will be an ideal response?
When the benefit of another hour of work is greater than the opportunity cost, we would expect the worker to work:
A. another hour. B. exactly that amount. C. an hour less. D. Cannot be determined without more information.
An externality exists when
A. there are opportunity costs. B. there are internal costs. C. there are private costs. D. there are external costs.
Use the table below to answer the following question.UnitsMaximum Willingness to PayMarket PriceMinimum Acceptable Price1$14$8$2212843108648885681064814If output is at 3 units, then the market ________ allocative efficiency and ________ productive efficiency.
A. does not achieve, does not achieve B. does not achieve, achieves C. achieves, achieves D. achieves, does not achieve