As Supply and Demand Change for a Good or Service,so

question 44

True/False

As supply and demand change for a good or service,so does its selling price.

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Definitions:

Break-Even Point

The level of sales at which total revenues equal total expenses, resulting in neither profit nor loss.

Variable Costs

Expenses that fluctuate in direct proportion to changes in levels of production or sales, such as materials and labor.

Fixed Costs

Expenses that do not change with the level of production or sales volumes, remaining constant regardless of the company's activity levels.

Margin Of Safety

The difference between actual sales and the break-even point. It measures how much sales can fall before a business incurs a loss.