Examlex

Solved

What Is the Effect on the Price and Quantity of a Product

question 246

Essay

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?


Definitions:

Variable Resource

A factor of production whose quantity can be changed easily by a firm in the short run to adjust output levels.

Total Variable Cost

The sum of all variable expenses associated with producing a particular level of output.

Total Fixed Cost

An expenditure that does not change with the level of production or sales over a short period.

Average Variable Costs

The costs of labor, material, and other inputs that change with the level of production or sales volume.

Related Questions