'Deflation' Occurs When the Price Level Becomes Negative

question 3

True/False

'Deflation' occurs when the price level becomes negative.

---

Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded.

Product Differentiation

The process by which companies distinguish their products or services from others in the market to attract a specific target audience.

Perfect Competition

A market structure characterized by a large number of small firms, identical products, free entry and exit, and perfect information, leading to efficient outcomes.

Peak Efficiency

The state of operating at maximum productivity with minimal waste and expense.