If the Quantity of Textbooks Supplied Is 10,000 Per Year

question 40

Multiple Choice

If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year,there is a ________ in the market and the price will ________.

• A)shortage;rise
• B)shortage;fall
• C)surplus;rise
• D)surplus;fall
• E)surplus;either rise or fall depending on whether supply increases to meet the surplus

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Definitions:

Equivalent Units for Materials

A calculation used in process costing that converts partially completed units into an equivalent number of fully completed units, focusing on the materials aspect.

Weighted-Average Method

An inventory costing method that assigns an average cost to each item in inventory, calculated by dividing the total cost of goods available for sale by the total units available for sale.

Equivalent Units

A concept used in cost accounting to express the amount of work done on units of production in terms of fully completed units.

Conversion Costs

The costs required to convert raw materials into finished products, typically including labor and overhead.