The Above Figure Shows the Market for T-Shirts

question 45

Multiple Choice

The above figure shows the market for t-shirts. If the price of t-shirts is $12, then

• A) there is a shortage and the price of t-shirts will fall.
• B) there is a surplus and the price of t-shirts will rise.
• C) there is a surplus and the price of t-shirts will fall.
• D) there is a shortage and the price of t-shirts will rise.
• E) the market is in equilibrium.

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Definitions:

Unit Product Cost

The total cost (direct materials, direct labor, and manufacturing overhead) associated with a single unit of product.

Unit Product Cost

The cost incurred to produce a single unit of product, inclusive of direct materials, direct labor, and manufacturing overhead.

Job T687

This could refer to a specific task, project, or product order within a job costing system, identified by the number T687.

Selling Price

The price at which a product or service is offered for sale to customers.