If the Price Level Falls,the Real Value of a Dollar

question 4

Multiple Choice

If the price level falls,the real value of a dollar

• A)rises,so people will want to buy more.This response helps explain the slope of the aggregate demand curve.
• B)rises,so people will want to buy more.This response shifts aggregate demand to the right.
• C)falls,so people will want to buy less.This response helps explain the slope of the aggregate demand curve.
• D)falls,so people will want to buy less.This response shifts aggregate demand to the left.

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Definitions:

Intensive Distribution

A strategy where a product is made available in as many outlets as possible, maximizing visibility and accessibility to consumers.

Exclusive Distribution

A level of distribution density whereby only one retailer in a specific geographic area carries the firm’s products.

Distribution Intensity

The level of availability of a product in a particular market; can range from intensive (available everywhere) to selective or exclusive (available in few locations).

Channel Conflict

Occurs when there is a clash or discord among channel members such as manufacturers, distributors, and retailers, often due to overlapping responsibilities or competition.