Under Which of the Following Cases May a Percentage Change

question 214

Multiple Choice

Under which of the following cases may a percentage change be computed?

• A) The trend of the amounts is decreasing but all amounts are positive.
• B) There is no amount in the base year.
• C) There is a negative amount in the base year and a negative amount in the subsequent year.
• D) There is a negative amount in the base year and a positive amount in the subsequent year.

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Definitions:

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Maximize

To increase or make as large or great as possible, typically used in the context of optimizing outcomes or efficiencies in economics and business.

Monopolistically Competitive Industry

A market structure characterized by many firms selling products that are similar but not identical, leading to competitive pricing and product differentiation.

Restaurants

Establishments where meals are prepared and served to customers.