If Consumer Incomes Increase, the Demand for Product X

question 208

Multiple Choice

If consumer incomes increase, the demand for product X

• A) will necessarily remain unchanged.
• B) may shift either to the right or left.
• C) will necessarily shift to the right.
• D) will necessarily shift to the left.

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Definitions:

AVC

Stands for Average Variable Cost, which is the total variable costs (costs that vary with production levels) divided by the quantity of output produced.

AVC

Average Variable Cost refers to the cost of variable inputs divided by the quantity of output produced.

ATC

Average Total Cost; the total cost divided by the quantity produced, representing the cost per unit of output.

AFC

Stands for Average Fixed Cost, which is the fixed costs of production divided by the quantity of output produced.