A Company's Sales Increase by the Same Amount Each Year

question 8

Multiple Choice

A company's sales increase by the same amount each year.This growth is ...

• A)quadratic
• B)exponential
• C)linear
• D)logarithmic
• E)Power

---

Definitions:

Cross Elasticity

Cross elasticity of demand measures the responsiveness of the demand for a good to a change in the price of another good, identifying substitute or complementary relationships.

Quantity Demanded

The total amount of goods or services that consumers are willing and able to buy at a specific price level, at a given point in time.

Normal Good

A type of good for which demand increases as the income of consumers increases, and vice versa.

Supply Schedule

A table of numbers showing the amounts of a good or service producers are willing and able to make available for sale at each of a series of possible prices during a specified period of time.