When the Quantity Demanded Has Increased at Every Price, It

question 105

Multiple Choice

When the quantity demanded has increased at every price, it might be because

• A)the number of buyers in the market has decreased.
• B)income has increased, and the good is an inferior good.
• C)the costs incurred by sellers producing the good have decreased.
• D)the price of a complementary good has decreased.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and equipment leases.

Variable Costs

Expenditures that fluctuate in relation to business activity levels, including costs linked to production volume or service intensity.

Cross-Over Point

The point at which two different strategies, actions, or processes result in the same outcome or cost, often used in analysis to decide between alternatives.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor costs.