Which of the Following Is True If the Volume of Sales

question 29

Multiple Choice

Which of the following is true if the volume of sales increases?

• A) fixed cost increases
• B) variable cost decreases
• C) variable cost increases
• D) fixed cost decreases

---

Definitions:

Straight Line

In the context of graphs, a linear representation that exhibits a constant rate of change between two variables.

Horizontal Change

A term that does not have a standard definition in economics; it might be a misinterpretation or miscommunication of a concept. NO.

Vertical Change

A movement along the y-axis in a graph, which in economic terms can represent changes in price or quantity depending on the context.

Independent Variable

is a variable in an experiment or study that is manipulated by the researcher to observe its effect on the dependent variable, determining cause-and-effect relationships.