According to the Law of Demand, If a Firm Reduces

question 35

Multiple Choice

According to the law of demand, if a firm reduces the price of its good:

• A) consumers in the market will demand more units of the good.
• B) some consumers will exit the market.
• C) consumers will demand fewer units than before the price cut.
• D) the quantity of goods produced and sold by the firm will decline.
• E) competing firms will reduce prices.

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Definitions:

Spreadsheet

A digital worksheet that organizes data in columns and rows, allowing for data manipulation and analysis, commonly used in business and finance.

Outsourcing Decision

involves choosing whether to perform a business operation internally or to hire an external organization to perform it.

Spreadsheet

A digital worksheet that organizes, calculates, and analyzes data through a grid of cells arranged in rows and columns.

Total Revenue

The complete amount of income generated by the sale of goods or services before any costs are subtracted.