When Economists Refer to the Determinants of Demand,they Are Referring

question 78

Multiple Choice

When economists refer to the determinants of demand,they are referring to factors that when changed,

• A)Cause a movement down a demand curve.
• B)Cause the demand curve to shift left or right.
• C)Influence producer behavior.
• D)Cause a movement up one demand curve.

---

Definitions:

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that varies with production volume.

Opportunity Cost

The value of the best alternative foregone as a result of making a decision, representing the benefit that could have been gained from the next best choice.

Fixed Manufacturing Cost

This refers to the consistent expenses incurred by a company for its manufacturing operations, excluding variable costs; it includes costs like rent, salaries of permanent staff, and depreciation of factory equipment.

Variable Manufacturing Cost

Costs that vary directly with the level of production output, such as raw materials and direct labor.