Suppose Carol's Candid Cameras Wants to Increase Its Total Revenue

question 180

Multiple Choice

Suppose Carol's Candid Cameras wants to increase its total revenue. If the firm lowers the price of cameras by 2 percent, Carol must be predicting that the quantity

• A) supplied will increase by more than 2 percent.
• B) demanded will increase by more than 2 percent.
• C) demanded will decrease by less than 2 percent.
• D) supply will decrease by less than 2 percent.

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Definitions:

Unemployment

A situation where individuals who are capable of working and are actively seeking employment are unable to find a job.

Aggregate Demand

Totality of demand for all goods and services in an economy, pegged at a given broad price level for a particular timeframe.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Unemployment

A situation where individuals who are capable of working and are seeking work are unable to find employment.