Each Point on the Demand Curve Indicates

question 312

Multiple Choice

Each point on the demand curve indicates

• A) the demand for the product.
• B) the quantity demanded at that price.
• C) the amount that people need.
• D) the amount people want to buy at different income levels.

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Definitions:

Deadweight Loss

Deadweight Loss is the loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Infant Industry

The infant industry argument supports protecting emerging domestic industries from international competition until they become competitive internationally.

Technological Efficiency

A state of production where a business cannot produce more of one good without lowering the production level of another good, given current technology.

Import Protection

Measures by a government to restrict foreign imports to protect domestic industries.