If the quality of a good deteriorates while its price remains the same,then the value of a dollar
A)rises and the cost of living increases.
B)rises and the cost of living decreases.
C)falls and the cost of living increases.
D)falls and the cost of living decreases.

Question

Quizplus · Accepted Answer

If the quality of a good deteriorates while its price remains the same, it means that the same amount of money spent on that good is now buying a lower quality product. This results in a decrease in the purchasing power of the dollar, which means it is worth less now than before. As a result, the cost of living increases because it takes more dollars to buy the same amount of goods and services.

If the Quality of a Good Deteriorates While Its Price