Which of the Following Is True of a Decrease in Product

question 115

Multiple Choice

Which of the following is true of a decrease in product prices?

• A) The quantity effect always dominates the price effect.
• B) The price effect always dominates the quantity effect.
• C) When the quantity effect dominates the price effect, total revenue decreases.
• D) When the price effect dominates the quantity effect, total revenue decreases.

---

Definitions:

Classical Approach

A method or theory in economics and political philosophy centered around free markets, competition, and limited government intervention.

Relative Frequency Approach

A method of estimating probabilities based on the proportion of observed occurrences of an event relative to the total number of trials.

Subjective Approach

A method of decision making or analysis that is based on personal judgment, opinions, or preferences rather than objective data.

Simple Event

An event consisting of only one outcome in a probability experiment.