If a Price Is Demand Determined, Then

question 124

Multiple Choice

If a price is demand determined, then

• A) the supply curve must be horizontal.
• B) the supply curve must be vertical.
• C) the demand curve must be vertical.
• D) the demand curve must be upward sloping.

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Definitions:

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and loan payments.

Competitively Organized

A market structure where multiple firms compete against each other, allowing for a wide range of choices for consumers and promoting efficiency.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes.

Marginal Revenue

The boost in income derived from the sale of an extra unit of a product or service.