In Which of the Following Cases Can We Be Certain

question 147

Multiple Choice

In which of the following cases can we be certain that a natural resource has become scarcer?

• A)both the demand for the resource and the supply of the resource have increased
• B)both the demand for the resource and the supply of the resource have decreased
• C)demand for the resource is unchanged and the supply of the resource has increased
• D)the demand for the resource has decreased and the supply of the resource is unchanged

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Definitions:

Relevant Range

The range of activity within which assumptions about variable and fixed cost behavior are valid.

Volume of Activity

Refers to the level of operations or the amount of output produced or services rendered in a certain period.

Fixed Cost

Costs that remain constant in total regardless of changes in the level of activity or volume of production.

Sales Increase

An upward change in the quantity or value of goods and services sold by a company, indicating growth in revenue.