Figure 9-2 -Refer to Figure 9-2.What Happens to the Demand and Supply

question 143

Multiple Choice

Figure 9-2

-Refer to Figure 9-2.What happens to the demand and supply in the Chinese market of pencil sharpeners at the world price

• A)The domestic quantity demanded is greater than the domestic quantity supplied.
• B)The domestic quantity demanded is less than the domestic quantity supplied.
• C)China should raise the domestic demand.
• D)China should raise the domestic supply.

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Definitions:

Accounting Costs

The explicit costs of running a business, such as wages, rent, and materials, recorded in the financial statements.

Total Revenue

The total amount of money received by a firm from sales of its products or services before any expenses are subtracted.

Average Product

The output per unit of input, for example, the average quantity of product produced per worker or per machine.

Marginal Product

The additional output that results from using one more unit of a variable input, holding all other inputs constant.