The Average Price of a Share of Stock on the New

question 88

Multiple Choice

The average price of a share of stock on the New York Stock Exchange falls by 30 percent. Other things being equal, we would expect

• A)an increase in the marginal propensity to consume.
• B)a decrease in the marginal propensity to consume.
• C)a shift up of the consumption function.
• D)a shift down of the consumption function.

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Definitions:

Seasonal Peaks

Periods of high demand or activity in a business or market that correspond with specific seasons or times of the year.

Revenue Management

The strategic use of pricing to increase the profitability of a business by selling the right product to the right customer at the right time for the right price.

Peak Period

The time frame during which demand for a service or product is at its highest.

Spoilage

The process by which products deteriorate in quality or become unfit for consumption or use over a period.