Which of the Following Would Cause a Movement Up (Or

question 62

Multiple Choice

Which of the following would cause a movement up (or leftward) along the demand curve for European autos in the United States?

• A)An increase in the price of American autos
• B)A decrease in the price of American autos
• C)An increase in income in the United States
• D)An increase in the price of European cars

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Definitions:

Barrier To Entry

Elements that create barriers or obstacles, making it difficult for new entrants to join a particular market or business sector.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of operation increases leading to a reduction in average costs.

Long-Run Average Cost

The average cost per unit of output when all inputs, including capital, are variable and optimized.

Marginal Revenue

The increase in revenue resulting from the sale of one additional unit of product.