Consider the Demand Curve in the Graph Shown

question 61

Multiple Choice

Consider the demand curve in the graph shown. Suppose price is initially $6 and 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:

Stable

Unchanging and consistent over time; a term often used to describe equilibriums or conditions that do not fluctuate drastically.

Attitudes

A psychological tendency expressed by evaluating an entity with some degree of favor or disfavor, shaping our responses toward that entity.

Unconscious

A part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions, according to Freudian psychology.

Negative

Characterized by the absence rather than the presence of distinguishing features.