A Reduction in the Inflation Rate Would Make Relative Prices

question 61

Multiple Choice

A reduction in the inflation rate would make relative prices

• A)less variable,making it more likely that resources will be allocated to their best use.
• B)less variable,making it less likely that resources will be allocated to their best use.
• C)more variable,making it more likely that resources will be allocated to their best use.
• D)more variable,making it less likely that resources will be allocated to their best use.

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Definitions:

Quantity Discounts

Pricing incentives granted to purchasers that buy in large volumes, typically reducing the cost per unit.

Pricing Schedules

Established plans listing prices for different products, services, or conditions, often varying based on volume, timing, or contract terms.

Marginal Unit

The additional unit of a good or service, used in economics to analyze the cost or benefit of producing one more unit.

Quantity Discounts

Discounts offered by suppliers to buyers for purchasing large amounts of a product, incentivizing bulk purchases.