In case of an increase in product prices:
A) the quantity effect always dominates the price effect.
B) the price effect always dominates the quantity effect.
C) when the quantity effect dominates the price effect, total revenue is rising.
D) when the quantity effect dominates the price effect, total revenue is falling.
D
You might also like to view...
A case study of NAFTA, with regard to the benefits for Canada from U.S. trade, found that:
a. Canada was not able to increase its exports due to barriers still remaining. b. Canada had modest gains but was harmed by immigration into the United States from Mexico. c. Canada had more trade diversion than trade creation and so was harmed overall. d. Canada had more trade creation than trade diversion and so benefited overall.
Price ceilings are illegal in the United States
Indicate whether the statement is true or false