The Price of a First-Class Stamp in 1957 Was 3

question 57

Multiple Choice

The price of a first-class stamp in 1957 was 3 cents, and it is 45 cents in 2012. From this we know that

• A) both the relative and the absolute price of first-class stamps increased from 1957 to 2012.
• B) the money price of first-class stamps increased from 1957 to 2012 but the absolute price of first-class stamps stayed constant.
• C) the money price of first-class stamps increased from 1957 to 2012 and the relative price of first-class stamps decreased.
• D) the money price of first-class stamps increased from 1957 to 2012, but we can't tell if the relative price of first-class stamps increased or decreased without more information.

---

Definitions:

Marginal Cost

The increased expenditure incurred from producing one more unit of a product or service.

Demand Curve

A visual diagram that illustrates how the quantity of a product demanded by buyers correlates with its price.

Marginal Revenue Curve

A graphical representation showing the additional income generated from the sale of one more unit of a good or service.

Average Variable Cost

Variable expenses, which fluctuate based on production volume, per unit of output.