A Change in Quantity Demanded

question 26

Multiple Choice

A change in quantity demanded

• A) is a shift of the demand curve.
• B) is a movement along the demand curve.
• C) can be either a shift or a movement along the demand curve.
• D) is caused when there is a change in a ceteris paribus factor.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and contribute to profits.

Gross Margin

The financial metric representing the difference between revenue and the cost of goods sold, divided by revenue, often expressed as a percentage. It indicates how efficiently a company is using its resources to produce goods.

Contribution Margin

Contribution margin is the revenue remaining after deducting variable costs, used to cover fixed costs and profit.

Variable Cost

Costs that change in proportion to the level of goods or services that a business produces.