Economics (AS & A Level) · Feb / March 2022 · Paper 12 · Question 11
A rise in the price of a good is accompanied by an increase in the quantity demanded. What could explain this?
- AConsumers spend a high proportion of disposable income on the good.
- BThe price of a complementary good has also increased.
- CThe price of the good is taken to be an indication of the level of quality.
- DThe substitute goods are all very much more expensive.
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Correct answer: C. The price of the good is taken to be an indication of the level of quality.
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