Which of the Following Is True

question 121

Multiple Choice

Which of the following is true?

• A)on a linear demand curve, the higher the price the more elastic is demand
• B)on a linear demand curve, elasticity is constant
• C)at the same price demand is more elastic on the steeper demand curve
• D)none are true

---

Definitions:

Output

The amount of goods and services produced by a business, industry, or economy.

Marginal Cost

The cost added by producing one additional unit of a product or service, important for decision-making in resource allocation.

Average Total Cost

The total cost of production divided by the quantity of output produced; it includes all fixed and variable costs.

Average Total Cost

The total cost of production divided by the quantity produced, indicating the average cost per unit of output.