Other Things the Same,if the Price Level Rises by 2

question 67

Multiple Choice

Other things the same,if the price level rises by 2% and people were expecting it to rise by 5%,then some firms have

• A)higher than desired prices,which increases their sales.
• B)higher than desired prices,which depresses their sales.
• C)lower than desired prices,which increases their sales.
• D)lower than desired prices,which depresses their sales.

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Definitions:

Innovation

The process of translating an idea or invention into a good or service that creates value or for which customers will pay.

Volume Density

Volume density, in logistics and material science, relates to the mass of an object or substance per unit volume, influencing shipping costs, storage requirements, and handling methods.

Transportation Costs

Expenses related to the movement of goods or materials from one location to another, including costs for shipping, freight, fuel, and warehousing.

Remanufacturing

The process of restoring used products to a condition of quality comparable to that of new products, often involving disassembly, cleaning, repair, and reassembly.