an increase in the price of a good will quizlet,

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chart, businessman, money @ Pixabay

I’m going to ask you a few questions about the effect of an increase in the price of a good. Let’s start with some definitions: Good – A tangible, durable item that people want or need and are willing to pay money for. Price – The amount of money charged by a seller for something. Increase – To make (something) larger, greater, or more than before; raise Cost – The expense involved in producing or providing something; usually measured per unit produced or provided Demand- The desire there is for goods and services at different prices during a certain time period What is the effect of an increase in the price on demand? The magnitude and direction of changes in demand caused by a change in price are unknown. Demand can be increased, decreased or there could not be any significant impact on it at all. It’s really hard to know for sure without more information. A decrease in what will happen when prices go up? It might cause people who have been spending their money elsewhere to spend that same amount instead with you! Whether they’re making less money because of your higher prices, or they just don’t want as many things anymore – either way this means more profit for you! You may also notice that some customers might pick preferred quality over quantity: if both products cost

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