The Price of Good X Falls and the Demand for Good

question 28

Multiple Choice

The price of good X falls and the demand for good Y decreases.We can conclude that

• A)X and Y are complements.
• B)X and Y are substitutes in production.
• C)X is an inferior good.
• D)X is a normal good.
• E)X and Y are substitutes.

---

Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process or providing a service.

Production Orders

Instructions or commands to start the manufacture of a certain quantity of a product within a specified timeframe.

Activity Rate

The rate determining the cost allocation in activity-based costing, which distributes overhead expenses to products or services according to particular activities.

Activity-Based Costing

A pricing approach that determines and allocates the expenses of each activity within an organization to all products and services based on their actual usage.