A Demand Curve Refers to a Graph That Relates

question 27

Multiple Choice

A demand curve refers to a graph that relates

• A)the quantity sold and price,which shows the maximum number of units that will be sold at a given price.
• B)the quantity sold and price,which shows the minimum number of units that must be sold to break even.
• C)the quantity sold and price,which shows the minimum number of units that must be sold in order to make a profit.
• D)total production costs to various price points in order to determine how many units must be sold in order to realize a predetermined profit.
• E)primary demand to selective demand.

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Definitions:

Interest Rate

The price, shown in the form of a percentage of the principal, charged by lenders to borrowers for asset employment.

Diversify

The attempt to spread investment risk by selecting a variety of investment options within a portfolio.

Adage

A short, pointed and memorable saying that expresses a truth or insight.

Private Saving

The portion of an individual's or household's income that is not spent on consumption or taxes and is instead set aside for future use.