The Law of Demand Is Illustrated by a Demand Curve

question 101

Multiple Choice

The law of demand is illustrated by a demand curve that is:

• A) horizontal.
• B) downward-sloping.
• C) vertical.
• D) upward-sloping.

---

Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified time period.

Marginal Revenue

The additional revenue that a firm generates from selling one more unit of a good or service.

Average Total Cost

The total cost to produce a given quantity of output divided by the number of units produced, representing the per-unit cost of production.

Marginal Cost

The increase or decrease in the total cost that arises from producing one additional unit of a good or service.