Question

Other things the same, a decrease in the price level makes consumers feel a. more wealthy, so the quantity of goods and services demanded rises. b. less wealthy, so the quantity of goods and services demanded falls. c. more wealthy, so the quantity of goods and services demanded falls. d. less wealthy, so the quantity of goods and services demanded rises.

Answer 1

more wealthy, so the quantity of goods and services demanded rises.

Step-by-step explanation:

If price level falls, the same basket of goods and services purchased by consumers would cost less. Consumers feel more wealthy and the quantity demanded of goods and services increases .

For example, if I spend $100 on clothes and the price of clothes falls to $50, I would buy clothes for $50 and still have extra $50. I can use the $50 to buy more clothes.

I hope my answer helps you.