When a Demand Schedule Is Drawn as a Graph

question 14

Multiple Choice

When a demand schedule is drawn as a graph,

• A)price is measured on the vertical axis.
• B)quantity is measured on the horizontal axis.
• C)the resulting curve has a negative slope.
• D)the other variables (besides price and quantity) are held constant.
• E)All of the above are correct.

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Definitions:

Output Units

Quantitative measures representing the amount of goods or services produced by a company or an economic system.

Constant Returns to Scale

A situation where increasing all inputs by the same proportion results in output increasing by that same proportion, indicating linear scalability of production processes.

Economies of Scale

Refers to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.