× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
e
5
e
4
4
d
4
o
3
p
3
t
3
3
m
3
p
3
m
3
f
3
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
kolitchko kolitchko
wrote...
Go to Answer
Posts: 564
Rep: 0 0
6 years ago
Suppose a company expects prices in general to rise by 5%, but the price of its product rises by 2%. How will the company respond to the price change?
A) It will increase production since it's getting a higher price for the product.
B) It will increase production more slowly since it's price is rising more slowly than average.
C) It will reduce production since it perceives a relative decline in the demand for its product.
D) It will stop production and shut down until prices rise more quickly.
Textbook 
Money, Banking, and the Financial System

Money, Banking, and the Financial System


Edition: 3rd
Authors:
Read 56 times
1 Reply
Replies
Answer verified by a subject expert
pepebillypepebilly
wrote...
#1
Top Poster
Posts: 601
Rep: 3 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

kolitchko Author
wrote...

6 years ago
Thanks
TheMoffattMan
wrote...

Yesterday
You make an excellent tutor!
branbran2k16
wrote...

2 hours ago
Smart ... Thanks!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1024 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 198
  
 301
  
 285
Your Opinion
Which country would you like to visit for its food?
Votes: 214
Previous poll results: What's your favorite coffee beverage?