On a Line Chart,the Income of a Consumer Is Measured

question 28

Multiple Choice

On a line chart,the income of a consumer is measured along the horizontal axis,and his consumption is measured along the vertical axis.The slope of the line is equal to ________.

• A) change in consumption plus change in income
• B) change in consumption minus change in income
• C) change in consumption multiplied by change in income
• D) change in consumption divided by change in income

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Definitions:

Long-run Cost Function

Refers to a firm's costs of production when all inputs, including capital, are variable and can be adjusted.

Cost-output Elasticity

A measure of how responsive the total cost of production is to a change in the quantity produced.

Long-run Cost Function

A representation of the relationship between output and the cost of production when all inputs, including capital, can be varied.

Short-run Cost Function

The costs a company incurs in the production of goods or services within a short period, considering some inputs are fixed.