A Demand Curve Is a Graph That Relates

question 218

Multiple Choice

A demand curve is a graph that relates

• A) the quantity sold and price, which shows the maximum number of units that will be sold at a given price.
• B) revenues and costs, which shows the minimum number of units that must be sold to break even.
• C) the quantity sold and revenues, which shows the minimum number of units that must be sold in order to make a profit.
• D) total production costs to various price points in order to determine how many units must be sold in order to realize a predetermined profit.
• E) primary demand to selective demand, which shows the growth of the market compared to change in market share.

---

Definitions:

Least-Cost Decision

A decision-making process focused on selecting the option that requires the lowest financial outlay while still achieving the desired result.

Economic Profit-Maximising

The strategy of adjusting the output and pricing of goods or services to achieve the highest possible profit, taking both explicit and implicit costs into account.

Total Revenue

The entire amount of income generated by the sale of goods or services before any expenses are subtracted.

Total Cost

The complete amount of expenses incurred in the production or acquisition of goods or services, including direct and indirect costs.