Figure 3-23 Refer to Figure 3-23. the Movement from Point a to Point

question 350

Multiple Choice

Figure 3-23
Refer to Figure 3-23. The movement from point A to point B on the graph would be caused by

• A) an increase in price.
• B) a decrease in price.
• C) a decrease in the price of a substitute good.
• D) an increase in income.

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Definitions:

MR

Marginal Revenue, which is the additional income generated from selling one more unit of a good or service.

MC

An abbreviation for Marginal Cost, referring to the expense associated with producing an additional unit of output.

Capacity

The maximum output that a business, plant, or facility can produce under normal conditions.

Increase Traffic

Refers to strategies and actions designed to attract more visitors to a website or through a physical location.