After a Price Decrease,the Quantity Effect Tends To

question 92

Multiple Choice

After a price decrease,the quantity effect tends to:

• A)decrease total revenue.
• B)increase total revenue.
• C)make the price effect stronger.
• D)make the price effect weaker.

---

Definitions:

Sherman Antitrust Act

A landmark 1890 U.S. legislation aimed at prohibiting monopolies and other practices that restrained competition and trade.

Fixing Prices

The practice of setting the price of a product or service, rather than allowing it to be determined naturally through free-market forces.

Oligopoly Outcome

In markets dominated by a small number of firms (an oligopoly), the outcome often includes non-price competition, strategic interactions, and potentially higher prices and lower outputs than in competitive markets.

Prisoners' Dilemma

A situation in game theory in which two individuals acting in their own self-interest pursue a course of action that does not result in the ideal outcome for either party.