The Quantity Demanded of a Good or Service Is the Amount

question 382

Multiple Choice

The quantity demanded of a good or service is the amount that

• A) a consumer would like to buy but might not be able to afford.
• B) is actually bought during a given time period at a given price.
• C) consumers plan to buy during a given time period at a given price.
• D) firms are willing to sell during a given time period at a given price.

---

Definitions:

Diminishing Marginal Returns

A principle that states as additional units of a variable input are added to fixed inputs, the additional output produced from each new unit eventually decreases.

Variable Resources

Inputs that change in quantity with levels of production, such as raw materials and labor.

Variable Cost

Costs that change in proportion to the level of goods or services that a business produces.

ATC

Average Total Cost, which is the sum of all production costs divided by the quantity of output produced.