1. Market demand is g. the total demand from all consumers.
2. An improvement of technology is a change that e. makes it possible for firms to produce more goods with the same amount of resources as before.
3. Profits are a. revenue minus cost.
4. As long as the total demand and the total supply of the commodity remain equal, d. the equilibrium price will remain unchanged.
5. Part of company’s profits is put back into the business rather than c. paid out as dividends.
6. With inflation, people have to increase expenditure because h. old the level of expenditure in money terms now buys a smaller quantity of goods.
7. Profit depends on f. how much the amount received is greater than the amounts paid.
8. Opportunity cost is the amount i. an input can obtain in its use elsewhere.
9. Examining how revenues and costs change with the level of output produced and sold b. the firm can select the output level maximizing its profit.