Figure 7-12 -Refer to Figure 7-12. an Increase in Price from $20

question 193

Multiple Choice

Figure 7-12
-Refer to Figure 7-12. An increase in price from $20 to $30 would

• A) increase total revenue by $2,000.
• B) decrease total revenue by $2,000.
• C) increase total revenue by $1,000.
• D) decrease total revenue by $1,000.

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Definitions:

Price Level

An index reflecting the overall cost of commodities and services within an economy.

Inflation Rate

An economy's rate of escalation in prices for goods and services over a given period.

Money Neutrality

An economic theory which postulates that changes in the money supply only affect nominal variables and have no influence on real variables such as output or employment in the long run.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts, often controlled by a nation's central bank.