According to the Graph Shown, If the Market Goes from Equilibrium

question 67

Multiple Choice

According to the graph shown, if the market goes from equilibrium to having its price set at $10 market transactions will:

• A) decrease by 7.
• B) decrease by 3.
• C) decrease by 10.
• D) not change-only price does.

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Definitions:

Fixed Expenses

Costs that do not change with the level of production or sales over a short period, such as rent or salaries.

Break Even

A financial situation where total costs equal total revenues, resulting in no net profit or loss.

Break-Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain for the business.

Monthly Unit Sales

The total number of units of a product sold by a company in one month.