As the Price of Good Z Falls,the Quantity Demanded of Good

question 56

Multiple Choice

As the price of good Z falls,the quantity demanded of good Z rises,but the quantity supplied of good Z does not change.Based upon this information we can conclude that the demand curve for good Z is ________________ and the supply curve for good Z is ________________.

• A) downward sloping; upward sloping
• B) upward sloping; downward sloping
• C) upward sloping; vertical
• D) downward sloping; vertical
• E) vertical; downward sloping

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Definitions:

Operating Leverage

Operating leverage is a measure of how revenue growth translates into growth in operating income, indicating the degree to which a firm can increase operating income by increasing revenue.

Degree of Operating Leverage

A financial ratio that measures how a change in sales volume will affect a company's operating income due to fixed and variable costs.

Temporary Workers

Employees hired for a specific period or to complete a specific task, often without the promise of long-term employment.

Financial Basis

In accounting, the underlying value or cost of an asset or investment used for tax reporting and calculating gains or losses.