Chapter 1 - Limits, Alternatives and Choices - Review Questions: 3

a) Increase b) Decrease c) Increase

Work Step by Step

If income rises (as in part a), then more goods and services can be produced. If the price of one good rises with all else remaining equal (part b), then less of the good can be consumed. If the price of one good falls with all else remaining equal (part c) then more can be consumed.

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