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

question 35

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:

Management-by-objectives

A strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed upon by both management and employees.

Uncertainty

The state of being unsure about the outcome of events, conditions, or the reliability of information.

Variability

The extent to which something is subject to change or difference.

Evaluation Interviews

Formal meetings between an employee and a supervisor or manager to discuss job performance, goals, and professional development.