Consider a Market in Which Price Is Initially $2 and Rises

question 67

Multiple Choice

Consider a market in which price is initially $2 and rises to $6. If we know total revenue fell as a result of this price change, then we also know that the _____ effect outweighed the _____ effect, and the market is more likely to be represented by _____.

• A) price; quantity; Graph A
• B) quantity; price; Graph A
• C) price; quantity; Graph B
• D) quantity; price; Graph B

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Definitions:

New Products

Items or services introduced into the market for the first time, catering to identified consumer needs or market gaps.

Order Getter

Sells in a conventional sense and identifies prospective customers, provides customers with information, persuades customers to buy, closes sales, and follows up on customers’ use of a product or service.

Conventional Sense

In the most widely accepted or traditional meaning of a word or concept.

Prospective Customers

Individuals or organizations potentially interested in purchasing a company's products or services but have not yet done so.