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.

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Definitions:

Goldsmiths

Historically, craftsmen who made and traded gold items, but also pivotal in the development of banking as they stored and lent money.

Gold Standard

An economic system where a fixed amount of gold serves as the standard unit of currency.

Branch Banking

Refers to a banking system where a single bank operates multiple outlets or branches, providing a range of banking services in different locations.

Banking Laws

Legislation that governs the operation of banks and other financial institutions, including regulations on lending, deposit taking, and investments.