Question

what occurs in a business when the amount of sales is equal to the amount it costs to make and distribute a product?
select one:
a. profit
b. break - even point
c. demand elasticity
d. demand inelasticity

prices are decreasing, but so is demand. this is a demonstration of which principle concerning supply and demand?

select one:
a. law of demand
b. equilibrium
c. law of supply
d. law of diminishing marginal utility

Explanation:

1. For the first question: The break-even point is defined as the sales level where total revenue from sales equals total costs of production and distribution, with no profit or loss. Profit occurs when sales exceed costs, while demand elasticity/inelasticity relate to demand's responsiveness to price changes.
2. For the second question: The law of supply states that, ceteris paribus, as price decreases, the quantity supplied (which aligns with the described "decreasing demand" in the context of supply-demand dynamics here, referring to the quantity producers are willing to supply) also decreases. The law of demand involves price and quantity demanded moving in opposite directions, equilibrium is a balance point, and the law of diminishing marginal utility relates to consumer satisfaction.

Answer:

1. b. Break-even point
2. c. Law of supply