For Which Goods Could the Demand Slope Curve Upward

question 24

Multiple Choice

For which goods could the demand slope curve upward?

• A) Necessary goods
• B) Prestige goods
• C) Discretionary goods
• D) Most goods

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Definitions:

Direct Materials Cost

The cost of materials that are an integral part of the finished product.

Fixed Cost

A cost that remains constant in total regardless of changes in the level of activity, such as lease payments and managerial salaries.

Units Produced

The total number of units manufactured during a given period, indicating the level of production output.

Activity Base

A measure or quantity (such as machine hours, labor hours, or materials used) that is directly associated with the costs incurred by an activity or process.