Choose the correct statement.
A. Marginal revenue equals total revenue divided by quantity sold.
B. For a monopoly, marginal revenue equals price.
C. For a monopoly, total revenue equals marginal revenue multiplied by the quantity sold.
D. When price is lowered to sell one more unit, the lower price results in a revenue loss and the increased quantity sold results in a revenue gain.
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Ответ:
It will stay the same i.e %ΔP = 0
Explanation:
We are given the following formula,
%ΔM + %ΔV ≈ %ΔP + %ΔY
And told that,
%ΔV = 0
%ΔM = %ΔY
If that is the case therefore then the new formula should be written as follows,
%ΔM = %ΔY
This is because the % change in money supply is the only variable that is on the left side of the equation. For it to be equal to % change in real GDP on the right side of the equation then ONLY the % change in real GDP can exist on the right side. Which means that %ΔP has to be 0 as well.
For example, assume both %ΔM and %ΔY are 2 and %ΔP is 1
%ΔM = %ΔY
2 ≠ 2 + 1
The equation is not satisfied.
Now assume %ΔP = 0.
2 = 2 + 0.
Equation is satisfied.
Seeing as %ΔP is 0 that means there is no change in Prices so the Price Level stays the same.