If the Price of a Good or Service Rises,households Have

Multiple Choice

If the price of a good or service rises,households have to choose whether to buy less of that good or service or spend less on other goods and services.Studies have shown that when the price of health care rises,

A) people cut back on their spending of medical services.
B) people continue to consume the same amount of medical services and reduce spending on other goods and services, because medical services are viewed as a necessity.
C) people consume more medical services because these services are viewed as being more valuable, and they significantly reduce spending on other goods and services.
D) there is no correlation between the rising prices of medical services and the quantity of these services consumed.