If Consumer 1 Has the Demand Function X₁ = 1,000

question 62

True/False

If consumer 1 has the demand function x₁ = 1,000 - 2p and consumer 2 has the demand function x₂ = 500 - p, then the aggregate demand function for an economy with just these two consumers would be x = 1,500 - 3p for p < 500.

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Definitions:

Net Profit Margin Ratio

A profitability metric that calculates the percentage of revenue remaining as profit after all expenses are deducted from total sales.

Unit Selling Price

The price at which a single unit of a product or service is sold to customers.

Operating Expenses

Expenses incurred from a company's operational activities, not including the cost of goods sold, typically including selling, general, and administrative expenses.

Gross Profit

The difference between revenue and the cost of goods sold, showing the basic profitability of a company’s core operations.