When the Price of a Good or Service Changes

question 35

Multiple Choice

When the price of a good or service changes,

• A)the demand curve shifts in the opposite direction.
• B)the supply curve shifts in the opposite direction.
• C)the supply curve shifts in the same direction.
• D)there is a movement along a given supply curve.

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Operating Expenses

Costs associated with the day-to-day operations of a business, including rent, utilities, and payroll.

Customer-Led Pricing

A pricing strategy that asks customers how much they are willing to pay and then offers the product at that price.

Pricing Strategy

The approach businesses use to set the prices for their products or services, influencing sales and revenue.