One of the Reasons Why Higher Prices Affect the Quantity

Multiple Choice

One of the reasons why higher prices affect the quantity of real output demanded is

A) at higher prices, business people become richer, so demand rises
B) at higher prices, real household wealth is reduced, so the quantity of output demanded falls
C) when prices are high, consumers fear that a recession is approaching
D) when pricing are rising, the central bank tends to reduce interest rates, thereby reducing demand
E) at higher prices, time becomes more valuable, so people buy now instead of later