Raising production will increase total units sold, which will decrease the per unit price of all units sold.This concept is known as the:
A)cost effect
B)output effect
C)price effect
D)income effect

Question

Quizplus · Accepted Answer

The concept described is known as the price effect, which states that as production increases and total units sold increase, the per unit price of all units sold will decrease.

Raising Production Will Increase Total Units Sold, Which Will Decrease