A Decrease in Price Causes

question 74

Multiple Choice

A decrease in price causes:

• A) a quantity effect, which is an increase in revenue that results from selling fewer units of the good.
• B) a price effect, which is an increase in revenue that results from receiving a lower price for each unit sold.
• C) both a price effect and quantity effect.
• D) a decrease in quantity demanded.

---

Definitions:

United States Code

A comprehensive consolidation and codification of the general and permanent federal statutes of the United States.

Bankruptcy Code

The collection of laws and regulations that govern the process of bankruptcy in the United States.

Voluntary Liquidation

The process of dissolving a company by its own decision, distributing its assets to creditors and shareholders.

Prepetition Assets

Assets that a debtor owned before filing for bankruptcy protection.