In a Graphical Display of a Cost Function, the Steepness

question 128

True/False

In a graphical display of a cost function, the steepness of a line represents the total amount of fixed costs.

---

Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a certain time period.

Perfectly Elastic

Describes a situation where the quantity demanded or supplied of a product responds infinitely to even the smallest change in price.

Inelastic

Refers to a situation where the demand or supply of a good or service is relatively unresponsive to changes in price.

Price Effect

The impact on consumer demand and supply of goods caused by changes in the price of a product or service.