The Law of Demand States That, Other Things Equal, When

question 259

Multiple Choice

The law of demand states that, other things equal, when the price of a good

• A)falls, the demand for the good rises.
• B)rises, the quantity demanded of the good rises.
• C)rises, the demand for the good falls.
• D)falls, the quantity demanded of the good rises.

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Definitions:

Sunk Cost

A sunk cost is a past expense that has already been incurred and cannot be recovered. Businesses cannot alter these costs with future decisions.

Uncontrollable Cost

Expenses that cannot be changed or influenced by the actions of a particular department or manager.

Incremental Cost

The additional cost associated with producing one more unit of a product or service.

Incremental Cost

The additional cost that is incurred if a certain business decision is made or an action is taken.