A Leftward Shift of a Demand Curve Is Called A(n)

question 25

Multiple Choice

A leftward shift of a demand curve is called a(n)

• A)increase in demand.
• B)decrease in demand.
• C)decrease in quantity demanded.
• D)increase in quantity demanded.

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Definitions:

Sunk Costs

Sunk costs refer to expenses that have already been incurred and cannot be recovered, and therefore should not affect future business decisions.

Opportunity Costs

The missed opportunity to benefit from different options when a single choice is made.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Diseconomies of Scale

The phenomenon where an increase in production leads to higher costs per unit due to inefficiencies that arise from scaling up operations.