When the price level falls by 20 percent, products that used to cost $600 now cost
A) $120.
B) $580.
C) $300.
D) $500.
E) $480.

Name: When the price level falls by 20 percent, products that used to cost $600 now cost A) $120. B) $580. C) $300. D) $500. E) $480.
Brand: Quizplus
Rating: 4.9 (33 reviews)

Question

Quizplus · Accepted Answer

If the price level falls by 20 percent, then prices will be 80 percent of what they were before. Therefore, products that used to cost $600 will now cost $600 x 0.8 = $480.

When the Price Level Falls by 20 Percent, Products That