The income effect is the concept that changes in consumption of a good result from changes in government spending

The base year is 2011. A country only produces Blu-ray players. The price of a Blu-ray player in 2011 was $100. The price of a Blu-ray player was $90 in 2012

The quantity of Blu-ray players produced in 2011 was 10,000 units and in 2012 was 10,500 units. Nominal GDP in 2012 equals A) $945,000. B) $1,000,000. C) $1,050,000. D) $900,000. E) an amount that cannot be determined without information about nominal GDP in 2008.

Competition in the form of advertising, better customer service, or longer warranties can also reduce profits by raising costs

Indicate whether the statement is true or false