Other things the same,an unexpected fall in the price level results in some firms having
A)lower than desired prices,which increases their sales.
B)lower than desired prices,which depresses their sales.
C)higher than desired prices,which increases their sales.
D)higher than desired prices,which depresses their sales.

Question

Quizplus · Accepted Answer

An unexpected fall in the price level means that some firms may have set their prices higher than the new market level, making their goods relatively more expensive, which can depress their sales.

Other Things the Same,an Unexpected Fall in the Price Level