The Demand Curve's Usual Slope Implies That Consumers

question 38

Multiple Choice

The demand curve's usual slope implies that consumers:

• A) buy more as the price of a good is increased.
• B) buy more as a good is advertised more.
• C) buy more at higher average incomes.
• D) buy less as the price of a good is increased.
• E) have tastes that sometimes change.

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Definitions:

Total Cost Curve

A graphical representation showing the total cost incurred by a firm in the production of goods or services at different levels of output.

Quantity

The volume of a physical or non-physical item or service.

Economies Of Scale

Economies of scale are cost advantages reaped by companies when production becomes efficient, leading to a reduction in the per-unit cost as the scale of operations increases.

Fixed Cost

A cost that does not change with an increase or decrease in the number of goods or services produced or sold.