The Law of Demand Is Represented by

question 92

Multiple Choice

The law of demand is represented by

• A)the positive slope of the demand curve.
• B)the negative slope of the demand curve.
• C)a shift of the demand curve to the right when price increases.
• D)a shift of the demand curve to the left when price decreases.
• E)a shift of the demand curve when income changes.

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Definitions:

Decreasing-Cost Industry

An industry where input costs tend to fall as the industry as a whole expands its output.

LRAC Curve

The Long Run Average Cost curve shows the lowest possible average cost of production at different levels of output when all inputs are variable.

Entry

The act or process of entering into a market as a new supplier or producer, often facing barriers such as high startup costs or regulations.

Breaks Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain.