Figure 11-3 -The Movement from Point B to Point C in Figure

question 316

Multiple Choice

Figure 11-3
-The movement from point B to point C in Figure 11-3 above shows

• A) skimming demand.
• B) penetration demand.
• C) that buyers see the product as a bargain and buy more.
• D) that buyers become dubious about the quality and prestige and buy less.
• E) a downturn in the economy.

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Definitions:

Supply And Demand Graph

A visual representation used in economics to show the relationship between the supply of products and the demand for them.

Public Good

A product or service that is non-excludable and non-rivalrous, meaning it can be used by anyone without diminishing its availability to others.

Allocative Efficiency

The apportionment of resources among firms and industries to obtain the production of the products most wanted by society (consumers); the output of each product at which its marginal cost and marginal benefit are equal, and at which the sum of consumer surplus and producer surplus is maximized.

Marginal Costs

The additional cost incurred by producing one more unit of a good or service, crucial for making production and pricing decisions.