Which of the Following Is True About the Demand Curve

question 5

Multiple Choice

Which of the following is true about the demand curve?

• A) A demand curve indicates the drop in the average per-unit production cost that comes with accumulated production experience.
• B) A demand curve indicates the cost per unit of output in the long run.
• C) A demand curve indicates the cost per unit of output in the short run.
• D) In a monopoly, the demand curve does not indicate the total market demand resulting from different prices.
• E) A demand curve shows the number of units the market will buy in a given time period at different prices that might be charged.

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Definitions:

GDP Deflator

An economic measure that converts output measured at current prices into constant-dollar terms, helping to distinguish between real growth and inflation.

Inflation

The tempo at which the cost of general goods and services escalates, undermining the ability to purchase as time progresses.

Expenditures Approach

A method of computing a country's gross domestic product (GDP) by adding up total consumption, investment, government spending, and net exports.

GDP

Gross Domestic Product, a measure of the economic output of a country within a specified period of time.