In an Attempt to Raise Sales, Hannah Cut Prices in Her

question 242

Multiple Choice

In an attempt to raise sales, Hannah cut prices in her bookstore by 20 percent.If the dollar value of her sales remained constant, that indicates

• A)old customers bought no more books.
• B)no new customers bought books.
• C)the quantity of books sold increased 20 percent.
• D)the demand curve is vertical.

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Definitions:

Tax

A compulsory financial charge or some other type of levy imposed by a governmental organization on individuals or entities to fund public expenditures.

Price

The sum of money needed to buy a product, service, or property.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the higher price they actually receive.

Tax

A compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures.