An Increase in Demand Will Increase Equilibrium Price to a Greater

question 72

Multiple Choice

An increase in demand will increase equilibrium price to a greater extent

• A)if the product is a normal good.
• B)if the product is an inferior good.
• C)the less elastic the supply curve.
• D)the more elastic the supply curve.

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Definitions:

Marginal Cost Curve

The Marginal Cost Curve graphs the cost incurred by producing one more unit of a good, typically showing how this cost changes with increased production.

Total Utility

The utmost satisfaction achieved from utilizing a specified amount of goods or services.

Limited Income

Describes a situation where an individual or household has a finite or restricted amount of monetary resources available for spending and saving.

Marginal Utilities

The gain in utility or enjoyment a consumer realizes from the consumption of one extra unit of a good or service.