The ____ the Demand Curve for a Good, the ____

question 266

Multiple Choice

The ____ the demand curve for a good, the ____ the change in equilibrium quantity after a shift of the supply curve.

• A)flatter; greater 
• B)flatter; smaller 
• C)farther from the origin at every output level; greater 
• D)farther from the origin at every output level; smaller

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Definitions:

Close Substitutes

Products that serve similar functions or needs and can easily replace one another in the eyes of the consumer.

Complements

Products or services that are used together, such that the demand for one increases the demand for the other.

Current Margin

The present profit margin; the difference between the sales revenue and the cost of goods sold at the current time.

Desired Margin

The profit margin a company aims for over the cost of a product or service.