If the Price of a Product Increases, Then

question 180

Multiple Choice

If the price of a product increases, then

• A) the budget line rotates and the optimal quantity demanded, which corresponds to the higher price, decreases.
• B) the budget line rotates and the optimal quantity demanded, which corresponds to the higher price, increases.
• C) the budget line shifts outward and the optimal quantity demanded, which corresponds to the higher price, decreases.
• D) the budget line shifts inward and the optimal quantity demanded, which corresponds to the higher price, increases.

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Definitions:

Written Record

Documentation of information, events, or ideas preserved in written form.

Short Message Service

A text messaging service component of most telephone, internet, and mobile device systems that allows users to send and receive short text messages.

Memos

Short written communications typically used within an organization to inform or instruct employees.

Internal Communication

The transmission of information and messages within an organization among its members or employees.