If There Is a Good That Is Consumed Almost Entirely

question 170

Multiple Choice

If there is a good that is consumed almost entirely by children, a significant reduction in the birth rate would

• A)move its demand curve to the right.
• B)move its demand curve to the left.
• C)cause a movement along the demand curve to a (higher price, lower quantity)point.
• D)cause a movement along the demand curve to a (lower price, higher quantity)point.

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Definitions:

Long Run

A period in economics where all factors of production can be adjusted, allowing firms to change their output levels based on market demands.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies with changes in quantity sold, highlighting the additional revenue from selling one more unit.

Price-Taker Markets

Markets in which individual sellers or buyers cannot affect the market price due to their small size relative to the market as a whole.

Market Price

The actual selling price of goods or services available in the marketplace at any given time.