After Years of Paying All Healthcare Expenses for Employees,a City's

question 70

Multiple Choice

After years of paying all healthcare expenses for employees,a city's largest employer has decided not to offer healthcare coverage anymore.The equilibrium price and quantity for medical services in the city would

• A) not be affected.
• B) rise because supply and demand would decrease.
• C) fall because demand would decrease and supply would remain constant.
• D) rise as demand would increase,but supply would remain constant.
• E) rise because demand would decrease and supply would remain constant.

---

Definitions:

Work in Process

Inventory items that are in the production process but not yet complete.

Work in Process

Inventory representing partially completed goods that are still in the process of production.

Direct Labor

The wages and benefits paid to employees who are directly involved in the production of goods or services.

Standard Costs

Predetermined costs for manufacturing goods, used as benchmarks to measure performance.