If a Shift in the Demand Curve That Raises the Price

question 446

Multiple Choice

If a shift in the demand curve that raises the price of oranges from $7 to $9 a bushel increases the quantity of oranges supplied from 4,000 bushels to 6,000 bushels, the

• A) supply of oranges is elastic.
• B) supply of oranges is inelastic.
• C) demand for oranges is elastic.
• D) demand for oranges is inelastic.

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Definitions:

Materials

Refers to the raw inputs, supplies, or components used in the manufacturing or production process to create finished goods.

Unit Conversion Cost

The cost incurred to transform raw materials into finished goods on a per unit basis, including both direct labor costs and manufacturing overhead.

Materials Cost

The total expense incurred for materials that are used in the production of goods or services.

Work in Process

Inventory that is in the production process but is not yet completed.