Consider the Demand Curve in the Graph Shown

question 7

Multiple Choice

Consider the demand curve in the graph shown. Suppose the price is initially $6 and then falls to $4. Which of the following statements is true?

• A) The quantity effect will outweigh the price effect, and total revenue will rise.
• B) The quantity effect will outweigh the price effect, and total revenue will fall.
• C) The price effect will outweigh the quantity effect, and total revenue will rise.
• D) The price effect will outweigh the quantity effect, and total revenue will fall.

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Definitions:

Service

The action of helping or doing work for someone, often referring to intangible activities provided to satisfy needs or wants.

Hindrance Stressors

Factors in a work environment that obstruct an individual's ability to achieve their goals, often leading to stress and dissatisfaction.

Challenge Stressors

Work-related demands or pressures that, though potentially stressful, are seen as opportunities for growth and are positively related to job performance.

Stimulate Performance

The act of motivating or encouraging individuals or groups to achieve or improve their performance levels.