The Demand Curve for a Normal Good Will Shift to the Left

question 60

Multiple Choice

The demand curve for a normal good will shift to the left if _____.

• A) the cost of producing the good increases
• B) consumers expect the price of the good to increase in the future
• C) the price of a complementary good increases
• D) the number of inputs used to produce the good are increased

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Definitions:

Fixed Overhead

Expenses that do not vary with the level of production or sales, such as rent, salaries of permanent staff, and insurance.

Planned Activity

Activities or tasks that have been scheduled and outlined in advance as part of a project or process planning.

Overhead Application

The process of assigning overhead costs to specific products or activity bases using a predetermined overhead rate.

Work in Process

Inventory that includes items that are in the production process but are not yet complete.