When the Quantity Effect Outweighs the Price Effect

question 145

Multiple Choice

When the quantity effect outweighs the price effect:

• A) a price increase will cause a decrease in total revenue.
• B) a price increase will cause an increase in total revenue.
• C) a price decrease will cause a decrease in total revenue.
• D) None of these is true.

---

Definitions:

Promisee

The person to whom a promise is made in a contract, who stands to benefit from the fulfillment of the promise.

Bind

To legally obligate oneself or another party to a contract or agreement, making it enforceable by law.

Illusory

Pertaining to an agreement or promise that lacks real consideration or enforceability, making it seem valid but without substance.

Video Games

Electronic games played through consoles, computers, or mobile devices, characterized by interactive gameplay and visual feedback.