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Insurance rates

The principle that there is a direct relationship
between the price of a good and the quantity sellers

are willing to offer for sale in a defined time period,

ceteris paribus, is the ___________.

Q116: Which of the following will increase the demand for

large automobiles?

a. A fall in the price of small automobiles

b. A rise in insurance rates for large automobiles

c. A fall in the price of large automobiles.

d. An increase in buyers’ incomes (assuming large

automobiles to be a normal good)

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