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QUESTION 14 Using microeconomic reasoning about supply and demand, what is the most likely explanation for the relationshi time? O Firms that produce services are going out of business more often than firms that produce goods O The government is encouraging consumers to buy more goods O Changes in the relative prices of goods and services are associated with changes in the relative demand for O People tend to change the degree to which they prefer goods over services from time to time

QUESTION 14 Using microeconomic reasoning about supply and demand, what is the most likely explanation for the relationshi time? O Firms that produce services are going out of business more often than firms that produce goods O The government is encouraging consumers to buy more goods O Changes in the relative prices of goods and services are associated with changes in the relative demand for O People tend to change the degree to which they prefer goods over services from time to time

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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What is the correct option for number 14
QUESTION 13 Which statement best describes the increases of real consumption of goods and services? O Consumption of goods has grown slower than consumption of services, especially after the COVID-19 Pandemic O Consumption is growing the same for goods and services O Consumption of goods has grown faster than consumption of services, especially after the COVID-19 Pandemic O Neither goods nor services consumption has changed, even after the COVID-19 Pandemic QUESTION 14 Using microeconomic reasoning about supply and demand, what is the most likely explanation for the relationship between changes in the consumption of goods and services over time? O Firms that produce services are going out of business more often than firms that produce goods O The government is encouraging consumers to buy more goods O Changes in the relative prices of goods and services are associated with changes in the relative demand for goods and services O People tend to change the degree to which they prefer goods over services from time to time QUESTION 15 Use the implicit price deflators for personal consumption expenditures (PCE) of goods and services (DPCERD3Q086SBEA) and real personal consumption expenditures (PCECT:96) to construct the level of the total PCE price deflator and the level of real PCE, or quantity of PCE (use LINE 1 and LINE 2; use the FORMAT tab to change the Y-Axis Position for LINE 2 to be "Right" instead of "Left"). Selected Answer: fredgraph (12).png Remove Attach File QUESTION 16 Browse Local Files Which of the following statements hest describes how the aggregate price of consumption and the aggregate quantity of (real) consumption have changed over time? Click Save and Submit to save and submit. Click Save All Answers to save all answers.
Transcribed Image Text:QUESTION 13 Which statement best describes the increases of real consumption of goods and services? O Consumption of goods has grown slower than consumption of services, especially after the COVID-19 Pandemic O Consumption is growing the same for goods and services O Consumption of goods has grown faster than consumption of services, especially after the COVID-19 Pandemic O Neither goods nor services consumption has changed, even after the COVID-19 Pandemic QUESTION 14 Using microeconomic reasoning about supply and demand, what is the most likely explanation for the relationship between changes in the consumption of goods and services over time? O Firms that produce services are going out of business more often than firms that produce goods O The government is encouraging consumers to buy more goods O Changes in the relative prices of goods and services are associated with changes in the relative demand for goods and services O People tend to change the degree to which they prefer goods over services from time to time QUESTION 15 Use the implicit price deflators for personal consumption expenditures (PCE) of goods and services (DPCERD3Q086SBEA) and real personal consumption expenditures (PCECT:96) to construct the level of the total PCE price deflator and the level of real PCE, or quantity of PCE (use LINE 1 and LINE 2; use the FORMAT tab to change the Y-Axis Position for LINE 2 to be "Right" instead of "Left"). Selected Answer: fredgraph (12).png Remove Attach File QUESTION 16 Browse Local Files Which of the following statements hest describes how the aggregate price of consumption and the aggregate quantity of (real) consumption have changed over time? Click Save and Submit to save and submit. Click Save All Answers to save all answers.
Expert Solution
Step 1

Solution: option-c

Explanation:

Option-c will be correct. The relative price can be defined as price of an item in comparison with the price of other items. To counter the relative price the government will use the policies that impacts the demand and supply of those specific items

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