18
QuizMultiple Choice

N/A — Exam

Question 18 • CMS 2026-2027 Economics and Personal Finance HONORS INITIAL CREDIT

How might the market react if cooking oil prices increase significantly?

Answer
A
The government will aid the sellers in maximizing profits.
B
Consumers will continue buying expensive cooking oil.
C
The sellers restrict sales to increase prices artificially.
D
Consumers will reduce their consumption and look for alternatives.

Explanation

When cooking oil prices rise significantly, it becomes more expensive for consumers to buy. Many consumers will respond by using less cooking oil or switching to alternatives, which is the typical effect of a price increase on demand. The correct choice is “Consumers will reduce their consumption and look for alternatives.”

AI-written and checked against the verified answer.

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