What effect is working when the price of a good falls and consumers tend to buy it instead of other goods ?

Related Mcqs:

Average income increase from Rs20,000 p.a to Rs 22,000 p.a Quantity demanded per year increases 5000 to 6000 units. Which of the following is correct ?

A. Demand is price inelastic B. The good is inferior C. Income elasticity is -2 D. The product is normal...

Increase unemployment benefits and less incentive to work would ?

A. shift aggregate supply to the right B. shift aggregate supply to the left C. shift aggregate demand to the right D. shift aggregate demand to the left...

If both marginal cost and marginal revenue increase, a firm ?

A. Should increase output B. Should reduce output C. will require further information on how to respond D. Should not change output...

According to the law of diminishing utility ?

A. Utility is at a maximum with the first unit B. Increasing units of consumption increase the marginal utility C. Marginal product will fall as more units are consumed D. Total utility will rise at a falling rate as more units are consumed...

Marginal revenue is the ________ when output is __________?

A. Change in average revenue, increased B. Change in total revenue, increase by one unit C. change in average revenue, increased by one unit D. change in total revenue increased...