Figure 10-18 -As Shown in Figure 10-18, the Economy's Point of Short-Run

question 101

Multiple Choice

Figure 10-18
-As shown in Figure 10-18, the economy's point of short-run equilibrium, given by the shift of the aggregate demand curve from AD₁ to AD₂, is

• A)E₁.
• B)E₂.
• C)E₃.
• D)unable to be determined.

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Definitions:

Average Revenue

The amount of income generated per unit of sale or average price at which a product is sold.

Demand Curve

An illustrated chart depicting the correlation between a good or service's price and the amount consumers want to buy during a certain period.

Marginal Revenue

The additional income that a firm receives from selling one more unit of a good or service.

Average Revenue

The average amount of money received by a firm per unit of output sold, calculated by dividing the total revenue by the number of units sold.