The saying "the lower the price, the better" may not always be correct for an economy's public interest because
a. people should have to pay for what they want.
b. people will overuse something they perceive as being cheaper than the utility they receive for it.
c. the government can no longer afford to provide all the goods and services it provides because it is slowly going broke.
d. cheaper prices will make people buy less of other things.
b
You might also like to view...
What is the difference between a firm's marginal revenue and its marginal revenue product?
A) Marginal revenue is the change in sales revenue from selling one more unit of output while marginal revenue product is the change in total revenue from hiring one more worker. B) There is no difference between the two terms. C) Marginal revenue is the increase in revenue when a firm raises its output price while marginal revenue product is the increase in marginal product when a firm hires an additional worker. D) Marginal revenue is the change in sales revenue from selling one more unit of output while marginal revenue product is the profit earned from hiring one more worker.
If two goods are substitutes, an increase in the price of one will cause the demand for the other to decrease
Indicate whether the statement is true or false