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Introduction To Economicseconomics-mcqs › introduction-to-economics
Published
26 May 2019
Last updated
28 May 2026

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What does a rise in the price of beef indicate in a market economy?

Multiple choice question for Introduction To Economics. Select an option, then review the explanation below.

Choose the correct answer

Explanation

Option A is incorrect because in a market economy, prices are determined by supply and demand, not by planning boards. Option B is misleading as the price change in beef does not directly instruct consumers to buy less pork. Option C is correct since higher prices typically encourage producers to supply more of that good. Option D is incorrect because an increase in price usually discourages consumers from buying more.

Practice related questions from the same subject.

  1. 1.Which of the following factors directly influences the supply curve?
  2. 2.Under what condition is a market considered to be in equilibrium?
  3. 3.What type of relationship is depicted when a graph shows that as the values on the horizontal axis increase, the values on the vertical axis decrease?
  4. 4.Which two elements are essential to construct a straight-line graph?
  5. 5.How can a nominal value be converted into a real value?

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