Refer to the Following Table Showing a Demand Schedule $\begin{array}{ll}\text { Price } & \text { Quantity } \\ &\text { demanded } \\\$ 200 &1000\\150 & 1400 \\100 & 1800\end{array}$

question 11

Multiple Choice

Refer to the following table showing a demand schedule:

$\begin{array}{ll}\text { Price } & \text { Quantity } \\ &\text { demanded } \\\$ 200 &1000\\150 & 1400 \\100 & 1800\end{array}$
-If price falls from $200 to $150,

• A) arrows representing the price and quantity effects both point down.
• B) an arrow representing the price effect points down and is longer than an arrow for the quantity effect.
• C) an arrow representing the quantity effect points up and is shorter than an arrow for the price effect.
• D) arrows representing the price and quantity effects both point up.
• E) total revenue moves in the same direction as the arrow representing the quantity effect.

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Definitions:

Positive Output

A situation where the production of goods or services results in a quantity greater than zero.

Long-Run Cost Function

A representation of the total cost associated with producing a given level of output when all inputs, including capital, can be varied.

Positive Output

A situation in which an economic model or production process results in a positive amount of goods or services being produced.

Supply Function

A mathematical relationship that shows the quantity of a good or service that producers are willing and able to sell at different prices.