Identify the Correct Statement

Multiple Choice

Identify the correct statement.

A) If the price level increases,we feel poorer and buy less.
B) If the price level increases,we feel richer and buy more.
C) If domestic prices increase,we substitute domestic goods for imported ones.
D) An increase in the price of a particular good leads to a substitution.
E) A decrease in the price of a particular good is like an increase in income and therefore we buy more.