Examlex

Solved

When Certain Consumer Products Are in High Demand,producers Might Buy

question 158

Multiple Choice

When certain consumer products are in high demand,producers might buy extra materials and equipment and when demand subsides,producers will cut back on their material purchases.This describes ____ demand.


Definitions:

Monopoly

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes.

Marginal Revenue

The boost in income derived from the sale of an extra unit of a product or service.

Marginal Cost

The additional cost incurred in the production of one extra unit of a good or service.

Marginal Profit

The additional profit gained from producing or selling one more unit of a good or service.

Related Questions