Explain the Reasons Why the AD Curve Slopes Downward

question 391

Essay

Explain the reasons why the AD curve slopes downward.

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Definitions:

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment compared to its cost.

Earnings Per Share

A metric that shows the portion of a company's profit attributed to each share of common stock, used to gauge a company's profitability.

Sales Revenue

The total income generated from the sale of goods or services before any expenses are subtracted.

Cost of Goods Sold

The immediate expenses associated with producing a company's sold merchandise.