Which of the Following Illustrates the Law of Demand

question 164

Multiple Choice

Which of the following illustrates the law of demand?

• A)More people watch college basketball in March than in November.
• B)The number of long distance calls in the United States is greater on Christmas than on Valentine's Day.
• C)College enrollment increases when federal tuition grants are readily available to students.
• D)The prevailing wage rate in an industry determines how many people choose to work in the industry.

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Definitions:

Average Variable Cost

The total variable cost divided by the quantity of output produced, representing the cost of producing one additional unit of goods.

Shutdown Point

The level of output and price at which a firm's revenue just covers its variable costs, below which it would be better for the firm to cease operations.

ATC Curve

Represents the average total cost of producing a good or service, calculated by dividing total cost by the quantity produced, and typically displayed as a graph.

AVC Curve

The Average Variable Cost curve, which graphs the per unit variable costs of production against the quantity of output.