Use the Following to Answer Question(s): Demand and Supply Curves

question 86

Multiple Choice

Use the following to answer question(s) : Demand and Supply Curves

-(Exhibit: Demand and Supply Curves) If there are no restrictions on the actions of buyers and sellers, the market price and quantity will tend toward ________ and ________ units, respectively.

• A) $25; 50
• B) $25; 250
• C) $15; 150
• D) $10; 50

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Definitions:

Operating Income

Revenue obtained from the main operations of a business, not including the costs of interest and taxes.

Variable Costs

Expenditures that fluctuate in direct relation to production or sales volumes, such as labor costs and materials used.

Fixed Costs

are expenses that do not change in total over a period of time, regardless of the level of production or sales volume, such as rent or salaries.

Break-even Point

The point where the amount produced or sold generates revenue that matches the overall costs, leading to neither profit nor loss.