Increasing Prices in the Face of Falling Demand Is Never

question 78

True/False

Increasing prices in the face of falling demand is never a good strategy and can cause what is called a death spiral.

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Definitions:

Trade Sector

The segment of the economy that involves the exchange of goods and services across borders.

Exports Plus Imports

The total value of all goods and services a country sells to and buys from other countries; a measure of a country's international trade.

Comparative Advantage

The capability of a nation, person, corporation, or area to create a product or service at a reduced opportunity cost compared to its rivals.

Vast Resources

An abundance of natural, financial, or human resources available for use or development.