Figure 4-4   In Figure 4-4, an Increase in Population Will Change Demand

question 254

Multiple Choice

Figure 4-4  

In Figure 4-4, an increase in population will change demand from

• A)D ₁ to D ₂ .
• B)D ₂ to D ₁ .
• C)D ₃ to D ₂ .
• D)D ₃ to D ₁ .

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Definitions:

Marginal Revenue

The increase in income from the sale of one extra unit of a good or service.

Marginal Revenue

The additional income from selling one more unit of a good; sometimes equals the price of the good.

Marginal Cost

The additional cost incurred from manufacturing or producing one more unit of a specific product or service.

Profit Maximizing

A financial strategy or goal of businesses to achieve the highest possible profit, where marginal revenue equals marginal cost.