According to the text, when management selects a price or quantity, it also selects the other. Explain why this is true
The firm's demand curve determines what quantity can be sold at various prices. Each point on the demand curve represents a price-quantity pair. Therefore, selecting one means selecting the other.
You might also like to view...
Barter occurs when
a. two people share everything b. one product is exchanged directly for another product c. money is used to buy goods d. money is exchanged directly for other money e. goods are used to buy money
This graph depicts a tax being imposed, causing demand to shift from D1 to D2. According to the graph shown, the tax caused:
A. positive government revenue and decreased consumption.
B. zero government revenue and decreased consumption.
C. a transfer of revenue to surplus and increased consumption.
D. positive government revenue and increased consumption.