A Demand Curve

question 250

Multiple Choice

A demand curve

• A) has an upward slope.
• B) has a downward slope.
• C) is a graph of the relationship between quantity demanded of a good and its price.
• D) Both answers B and C are correct.
• E) Both answers A and C are correct.

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Definitions:

ROI Analysis

A financial metric used to evaluate the efficiency of an investment or compare the efficiency of several different investments, calculated by dividing the net profit from the investment by the initial cost of the investment.

Net Operating Income

The income generated from normal business operations, calculated as revenues minus operating expenses and excluding income from investments and taxes.

Average Operating Assets

The average value of assets used by a company in its operational activities, calculated over a certain period of time for analysis of performance efficiency.

Residual Income

The income that remains after subtracting all required costs of capital from the operating income; a measure of net profitability.