One Reason Why the Aggregate Demand (AD)curve Slopes Downward Is

question 88

Multiple Choice

One reason why the aggregate demand (AD) curve slopes downward is that

• A)increases in the price level cause consumers to substitute foreign goods for domestic goods.
• B)when the price level falls firms must compete more when output increases.
• C)increased production results in lower production costs.
• D)when the price level falls consumers increase their saving rate.
• E)aggregate expenditure increases as the price level rises.

---

Definitions:

Market Share

Represents the portion of a market controlled by a particular company or product.

Share of Customer

The percentage of an individual customer's purchase of a product that comes from a specific company.

Zone of Tolerance

the range within which customers are willing to accept variations in a product or service's quality.

Customer Expectations

Customer Expectations refer to the preconceived notions or standards that consumers have regarding the quality, performance, and value of a product or service before making a purchase.