Other Things the Same,an Unexpected Fall in the Price Level

question 65

Multiple Choice

Other things the same,an unexpected fall in the price level results in some firms having

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

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Definitions:

Profit Potential

The capability of a business or investment to generate earnings over a period, indicating its financial viability and attractiveness.

Lifetime Value Analysis

A comparison of the costs of retaining customers and the costs of acquiring new customers, to determine how much money each type of customer requires.

Retaining Customers

Strategies and activities that a business uses to prevent customer defection and to maintain long-lasting relationships with them.

Acquiring New Customers

The process of gaining new consumers or clients for a business's products or services, often involving marketing and sales strategies.