You Observe That the Price of a Good Rises and the Quantity

question 45

Multiple Choice

You observe that the price of a good rises and the quantity decreases. These observations can be the result of the

• A) demand curve shifting leftward.
• B) supply curve shifting rightward.
• C) demand curve shifting rightward.
• D) supply curve shifting leftward.

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Definitions:

P × q

The formula representing total revenue, where P is the price per unit and q is the quantity of units sold.

Homogeneous

Characteristics of products or services that are identical in quality and features, making them indistinguishable from one another in the eyes of consumers.

Fast-Food Industry

The fast-food industry comprises businesses that serve quick service food items over the counter or via drive-thrus, often emphasizing speed, convenience, and affordability.

Marginal Revenue

The additional income generated from selling one more unit of a good or service.