The Amount of a Particular Good or Service That Buyers

question 26

Multiple Choice

The amount of a particular good or service that buyers in a market will purchase at a given price during a specified period is called:

• A) quantity demanded.
• B) quantity supplied.
• C) demand.
• D) supply.

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Definitions:

Short-Run Supply Curve

A supply curve that shows the quantity of a product a firm in a purely competitive industry will offer to sell at various prices in the short run; the portion of the firm’s short-run marginal cost curve that lies above its average-variable-cost curve.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the number of units produced.

Average Variable Cost

The total variable cost of production divided by the quantity of output produced, representing the variable cost per unit of output.

Purely Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product, leading to price determination by market forces.