Asked by
Trang Tran-Collins
on Dec 15, 2024
Verified
In Figure 13-4B above, the demand curve shifts from D2to D3(B) . This most likely represents
A) an increase in demand resulting from competitor or consumer changes.
B) an increase in demand that required a decrease in price.
C) no change in price and no change in demand.
D) no change in demand or price but a greater profit due to economies of scale.
E) a decrease in price from $8 to $6 per unit.
Economies of Scale
Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.
- Distinguish between a movement along the demand curve and changes in the demand curve's position.
- Comprehend the effect of market environments and consumer inclinations on demand and the formulation of pricing strategies.
Verified Answer
GG
Learning Objectives
- Distinguish between a movement along the demand curve and changes in the demand curve's position.
- Comprehend the effect of market environments and consumer inclinations on demand and the formulation of pricing strategies.