An Increase in Price

question 53

Multiple Choice

An increase in price:

• A) cannot cause a quantity effect.
• B) cannot cause a price effect.
• C) causes a decrease in revenue resulting from selling fewer units and a simultaneous increase in revenue resulting from receiving a higher price.
• D) causes an increase in quantity demanded.

---

Definitions:

International Diplomacy

The practice of negotiation and dialogue between countries, conducted by diplomats and political leaders, to manage international relations and resolve conflicts.

Soviet Union

A former federal socialist state in Eastern Europe and Asia, existing from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR), and a principal participant in the Cold War.

Marshall Plan

A U.S.-sponsored program designed to rehabilitate the economies of 17 western and southern European countries after World War II in order to create stable conditions for democratic institutions.

Economic Recovery

A phase in the economic cycle where a nation's economy experiences growth and improvement after a period of decline or recession.