What Would the Demand and Supply Curves Look Like That

question 54

Multiple Choice

What would the demand and supply curves look like that are associated with a market in which price,supply,and demand are the only factors involved? 

• A) They would be reciprocals of each other. 
• B) They would run parallel to each other. 
• C) They would intersect at the market equilibrium. 
• D) They would be straight lines that run in opposite directions.

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold, directly indicating the efficiency of core business activities.

Absorption Costing

A method of inventory costing that includes all manufacturing costs, both variable and fixed, in the cost of a product.

Variable Costing

An accounting method that only includes variable production costs (materials, labor, and overhead) in product cost calculations, excluding fixed costs.

Operating Income

Profit generated from a company's regular business operations, excluding expenses like taxes and interest.