When Price Rises, Total Revenue

question 47

Multiple Choice

When price rises, total revenue

• A)always rises because the quantity purchased does not change.
• B)may rise or fall, depending on whether the quantity purchased rises or falls.
• C)always falls because the quantity purchased always falls.
• D)may rise or fall, depending on how much the quantity purchased falls.
• E)may rise or fall, depending on whether the quantity purchased changes.

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Definitions:

Financial Industry

A sector of the economy that includes businesses and institutions that provide financial services, such as banking, investment, and insurance.

Stimulus

Economic measures taken by the government to encourage growth or prevent economic slowdown, often through spending or tax cuts.

Disinflation

A reduction in the rate of inflation; a slowdown in the rate at which prices increase.

1960s

A decade of significant cultural, political, and technological change, marked by movements for civil rights, space exploration, and the emergence of counterculture.