Some Sales Managers Are Talking Shop

question 50

Multiple Choice

Some sales managers are talking shop. Which of the following quotations refers to a movement along the demand curve?

• A) "Since our competitors raised their prices our sales have doubled."
• B) "It has been an unusually mild winter; our sales of wool scarves are down from last year."
• C) "We decided to cut our prices, and the increase in our sales has been remarkable."
• D) none of the above

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Definitions:

Tape Recorder

An electronic device used for recording sound on magnetic tape and usually capable of playback.

Money

A medium of exchange used to facilitate transactions of goods and services.

Producer's Surplus

The difference between the amount a producer is willing to accept for a good or service and the actual amount received from its sale.

Supply Curve

A graph showing the relationship between the price of a good and the amount of it that suppliers are willing to produce and sell, under the assumption of other conditions being constant.