When We Move Up or Down a Given Demand Curve

question 5

Multiple Choice

When we move up or down a given demand curve, what is held constant?

• A) Only price is held constant.
• B) Income and the price of the good are held constant.
• C) All nonprice determinants of demand are assumed to be constant.
• D) All determinants of quantity demanded are held constant.

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Definitions:

Economic Growth Rate

The rate at which the gross domestic product (GDP) of an economy increases over a specific period, indicating the health and prosperity of the economy.

Industry Growth

The increase in the size and output of an industry over time, typically measured in terms of revenue, employment, or output.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business.

Raw Materials

Basic goods used in the production of final products.