A study of how a rise in the price of petrol changes one family's spending on bus fares is an example of

macroeconomics, because petrol is used across the economyCorrect answerYour answermacroeconomics, because prices are involvedCorrect answerYour answermicroeconomics, because it looks at one household's choiceCorrect answerYour answerneither, because it is about transportCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

What decides the branch is the unit studied, not the good involved.
One family's spending decision is an individual unit, so this is microeconomics.

Worth noting

Prices appear in both branches; a single good's price and a single family's choice are micro.

Concept: Deciding the branch by the unit studied
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsMicroeconomics and macroeconomics

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A study of how a rise in the price of petrol changes one family's spending on bus fares is an example of

Explanation