Which of the Following Statements About Prices and Profit Is

question 85

Multiple Choice

Which of the following statements about prices and profit is true?

• A)Higher prices always lead to lower profits because fewer units will be sold.
• B)Higher prices always lead to lower demand and higher profits.
• C)Higher prices combine with lower demand to change the level of profits.
• D)Higher prices will be offset by lower demand so profits will stay constant.

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Definitions:

Draft

A preliminary version of a document or plan, subject to revisions and corrections.

Instrument

A legal document that formalizes an agreement or right, often used in financial and property transactions.

Maker

A person obligated as the payor on a promissory note. See also comaker.

Bearer Note

A type of fixed-income security that is not registered by the issuer, allowing any holder in possession to collect on it.