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:

Rate

A measure of the speed at which something happens or is processed, often expressed as a unit per time.

Minute

A unit of time equal to 60 seconds or 1/60th of an hour, commonly used to measure the duration of time.

Discrete Variables

Variables in statistical analysis that assume distinct or separate values, often counted in whole numbers.

State Variables

Variables that represent the configurations or states of a system at a certain time, in disciplines such as physics, engineering, and economics.