Suppose When Nablom's Bakery Raised the Price of Its Breads

question 240

Multiple Choice

Suppose when Nablom's Bakery raised the price of its breads by 10 percent, the quantity demanded fell by 15 percent.What was the effect on sales revenue?

• A)Sales revenue increased.
• B)Sales revenue remained unchanged.
• C)Sales revenue decreased.
• D)It cannot be determined without information on prices.

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Definitions:

Goods Produced

Refers to the outcomes of manufacturing or production processes within an economy, encompassing both tangible products and intangible services.

Value Created

The difference between the value of an entity's outputs and the cost of inputs used, indicating the economic value added by the entity.

Capital Investment

Funds expended by a business to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Robinson Crusoe

Used in economics as a metaphor for the study of decision making by individuals in solitude.