The Output Effect Refers to How

question 162

Multiple Choice

The output effect refers to how

• A) lower prices affect the quantity sold.
• B) firms can set their prices.
• C) firms choose their quantities.
• D) lower prices affect revenue.
• E) lower output affects the price.

---

Definitions:

Possession

The act or state of owning, controlling, or having an item or property in one's physical custody.

Exclusive Use

A clause in a lease or agreement granting one party the sole right to use a property, asset, or service in a specified way.

Rent Escalation Clause

In a lease, a clause that permits the landlord to increase the rent in association with increases in costs of living, property taxes, or the tenant’s commercial business.

Long-Term Leases

Lease agreements that extend for a long period, often exceeding a year, typically used for real estate and heavy equipment.