The Following Table Shows an Aggregate Demand Schedule and an Aggregate

question 38

Multiple Choice

The following table shows an aggregate demand schedule and an aggregate supply schedule.Which of the following is true?​ ​
Table 5.1
​

• A)Equilibrium output is $1,000,and equilibrium price level is 25.
• B)Equilibrium output is $800,and equilibrium price level is 50.
• C)Equilibrium output is $200,and equilibrium price level is 125.
• D)Equilibrium output is $400,and equilibrium price level is 25.
• E)Equilibrium output is $600,and equilibrium price level is 75.

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Definitions:

Margin of Safety

The difference between actual sales and the break-even point, indicating the amount by which sales can drop before a business incurs a loss.

Degree of Operating Leverage

Degree of operating leverage measures the sensitivity of a company's operating income to a change in sales volume, indicating the impact on profits from sales fluctuations.

Contribution Format Income Statement

An income statement format that separates variable costs from fixed costs, highlighting the contribution margin.

Unit Sales

The total number of individual items or units that a company sells during a certain period.