All categories

3 years ago

Which is not a characteristic of a demand curve?

Business

1 answer:

Dominik [7]3 years ago

8 0

Answer: The correct answer is (A) : Positive upward slope.

Explanation: A demand curve is basically a graph like any other with the variables in potted on both the x-axis (left to right) and the y-axis (top to bottom). Understanding the definition of demand would make it easier to understand why the answer is option A and why the demand curve has a negative downward slope.

Demand can be defined as the quantity of a commodity or service that a consumer is willing and able to buy at a given price and at a particular point in time. And the law of demand states that “other factors being held constant, the higher the price of a commodity, the lower the quantity being demanded by the consumer. And the lower the price of a commodity, the higher the quantity being demanded by a consumer.”

This is simply a rational consumer behavior. So if the price of movie tickets were to go up let’s say from $10 to $15 then a consumer who previously could afford to watch 8 movies in a month (that’s $80) would be having second thoughts and so, rather than spend $120 per month on movie tickets, would be more inclined to watch less movies and stay within his/her $80 budget.

Therefore, on the demand curve, as the price of movie tickets moves positively towards the right side (on the x-axis), the quantity demanded would move negatively downwards (on the y-axis). As one variable increases the other one decreases, and vice versa. That explains why the demand curve has a negative downward slope.

You might be interested in

A random sample of 30 lunch orders at noodles and company showed a mean bill of $10.36 with a standard deviation of $5.31. find

Paladinen [302]

The formula for calculating the Confidence Interval is as follows:

Confidence Interval = x +- (z*s)/√N

Where:

x = mean = 10.36

z = taken from standard normal distribution table based on 95% confidence level = 1.96

s = standard deviation = 5.31

N = sample size = 30

Substituting know values on the equation:

Confidence Interval = 10.36 +- ( 1.96 * 5.31) / √30

Confidence Interval = 8.46 and 12.26

Hence the bill of lunch orders ranges from 8.46 to 12.26.

4 0

3 years ago

The table below presents the average and marginal cost of producing cheeseburgers per hour at a roadside diner.

Butoxors [25]

Answer:

a. At a quantity of 40 cheeseburgers per hour, the average total cost of production is falling and the marginal cost of cheeseburger production is rising.

b. At a quantity of 60 cheeseburgers per hour, the average variable cost of production is rising and the average total cost of cheeseburger production is at a minimum.

Explanation:

a. At a quantity of 40 cheeseburgers per hour, the average total cost of production is falling and the marginal cost of cheeseburger production is rising.

From the table in the question, it can be observed that the average total cost of production at a quantity of 30 cheeseburgers per hour is higher than the average total cost of production at a quantity of 40 cheeseburgers per hour, while the average total cost of production at a quantity of 50 cheeseburgers per hour is lower than the average total cost of production at a quantity of 40 cheeseburgers per hour. This implies that at a quantity of 40 cheeseburgers per hour, the average total cost of production is falling.

Also from the table in the question, it can be observed that the marginal cost of production at a quantity of 30 cheeseburgers per hour is lower than the marginal cost of production at a quantity of 40 cheeseburgers per hour, while the marginal cost of production at a quantity of 50 cheeseburgers per hour is higher than the marginal cost of production at a quantity of 40 cheeseburgers per hour. This implies that at a quantity of 40 cheeseburgers per hour, the marginal cost of production is rising.

b. At a quantity of 60 cheeseburgers per hour, the average variable cost of production is rising and the average total cost of cheeseburger production is at a minimum.

From the table in the question, it can be observed that the average variable cost of production at a quantity of 50 cheeseburgers per hour is lower than the average variable cost of production at a quantity of 60 cheeseburgers per hour, while the average variable cost of production at a quantity of 70 cheeseburgers per hour is higher than the average variable cost of production at a quantity of 60 cheeseburgers per hour. This implies that at a quantity of 60 cheeseburgers per hour, the average variable cost of production is rising.

Also from the table in the question, it can be observed that the average total cost of cheeseburger production at quantities of 50 and 60 cheeseburgers per hour are equal and the lowest on the table, this implies that the average total cost of cheeseburger production is at a minimum at a quantity of 60 cheeseburgers per hour.

7 0

2 years ago

Given the following information, prepare an income statement for the Dental Drilling Company.

dmitriy555 [2]

Answer:

Results are below.

Explanation:

Giving the following information:

Selling and administrative expense $90,000

Depreciation expense 75,000

Sales 621,000

Interest expense 46,000

Cost of goods sold 231,000

Taxes 50,000

With the information listed above, we need to make an income statement following the structure below:

Sales= 621,000

COGS= (231,000)

Gross profit= 390,000

Selling and administrative expense= (90,000)

Depreciation expense= (75,000)

Interest expense= (46,000)

Eearning before taxes (EBT)= 179,000

Taxes= (50,000)

Net operating income= 129,000

8 0

3 years ago

The decision-making process has five steps. After collecting relevant information and evaluating each alternative, the next step

Otrada [13]

Answer:

Select the course of action

Explanation:

Because it’s the next step after collecting relevant information and evaluating each alternatives

7 0

2 years ago

Jared is giving a speech on the devastating effects of poverty and hunger, and he decides to use some statistics to emphasize th

Savatey [412]

fgedilbvxAnswer:

Explanation:

scamI"KJVZCL:Az

8 0

3 years ago