If the Demand for a Product Increases and the Supply

question 242

True/False

If the demand for a product increases and the supply of the product does not change, equilibrium price and equilibrium quantity will both increase.

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Definitions:

Shutdown Point

The level of operation at which a firm's total revenue is equal to its total variable costs, below which the firm should cease production to minimize losses.

Point

A specific location or position in a spatial setting or within a set of data.

Market Price

The price at which goods or services are currently sold on the open market.

Profits

The financial gain calculated as the difference between the revenue earned from sales and the expenses, taxes, and costs incurred in producing those sales.