Other Things the Same,an Increase in Velocity Means That

question 227

Multiple Choice

Other things the same,an increase in velocity means that

• A)the rate at which money changes hands falls,so the price level rises.
• B)the rate at which money changes hands falls,so the price level falls.
• C)the rate at which money changes hands rises,so the price level rises.
• D)the rate at which money changes hands rises,so the price level falls.

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Definitions:

Price Elasticity

Measures the responsiveness of quantity demanded or supplied of a good to a change in its price, with elasticity types including elastic, inelastic, and unitary.

Demand Function

An equation that describes the relationship between the quantity of a good consumers are willing to buy and the price of the good.

Tickets

Documents or electronic vouchers that grant the holder permission to enter a place, travel on a vehicle, or participate in an event.

Marginal Revenue

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