The Figure Given Below Shows the Demand Curves [D₁ and

question 11

Multiple Choice

The figure given below shows the demand curves [D₁ and D₂] and the supply curve [S₁] of capital. Figure 30.1 In Figure 30.1, if the initial demand curve is D₁, the capital market is in equilibrium at:

• A)point a.
• B)point b.
• C)point c.
• D)point d.
• E)point f.

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Definitions:

Profit-maximizing

A strategy or point where a business reaches the highest possible profit level with given operational limits and market conditions.

Total Revenue

the overall amount of money generated by a firm from its sales activities before any costs or expenses are subtracted.

Variable Cost

Costs that change in proportion to the activity of a business such as the cost of raw materials.

Variable Costs

Costs that vary in proportion to the level of production or sales volume.