A Demand Curve Is a Representation of the Relationship,ceteris Paribus,between

question 55

Multiple Choice

A demand curve is a representation of the relationship,ceteris paribus,between quantity demanded of a product and

• A)supply.
• B)wealth.
• C)its price.
• D)income.
• E)preferences.

---

Definitions:

Decreasing-cost Industry

An industry where the cost per unit of output decreases as the scale of production increases.

Long-run Equilibrium Price

The price level at which the quantity supplied equals the quantity demanded, achieved over a period where all inputs can be varied by producers.

Increase in Demand

A situation where there is a rise in consumers' desire to purchase goods or services, leading to higher quantity demanded at every price level.

Constant Costs

Occur when the cost of producing an additional unit of a good does not change as the scale of production increases or decreases.