Demonstrating How an Economic Variable Changes from One Year to the Next

question 100

Multiple Choice

Demonstrating how an economic variable changes from one year to the next is best illustrated by a

• A) time-series graph.
• B) linear graph.
• C) Venn diagram.
• D) scatter diagram.
• E) cross-section graph.

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Definitions:

Reservation Price Model

A model that defines the maximum price a consumer is willing to pay for a good or service.

Aggregate Demand

The aggregate need for all products and services in an economy, measured at a specific price level and during a particular time frame.

Marginal Revenue

The additional income generated from selling one more unit of a product or service.

Demand Curve

A graph showing the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at various prices.