Which of the Following Would Not Be an Expected Response

question 176

Multiple Choice

Which of the following would not be an expected response from a decrease in the price level and so help to explain the slope of the aggregate-demand curve?

• A) When interest rates fall,Sleepwell Hotels decides to build some new hotels.
• B) The exchange rate falls,so French restaurants in Paris buy more Iowa pork.
• C) Janet feels wealthier because of the price-level decrease and so she decides to remodel her bathroom.
• D) With prices down and wages fixed by contract,Millio's Frozen Pizzas decides to lay off workers.

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Definitions:

Profit Maximization

A business's objective to achieve the highest possible profits through the management of revenues and costs, often through adjusting price, output, and production efficiency.

All-Natural Ice Cream

Ice cream made using only natural ingredients, without artificial flavors, colors, or preservatives.

Market Price

The price at which a good or service is offered in the marketplace, determined by supply and demand dynamics.

Short Run

A period in which at least one factor of production is fixed and cannot be altered, limiting the immediate operational changes a business can make.