A-LevelEconomicsThe price system and the microeconomy9708/12 · Feb/Mar 2016 · Q51 Mark
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.
✓ Correct answer
C: The price of the good is taken to be an indication of the level of quality.
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