The Table Below Displays Hypothetical Demand and Supply Schedules for the Market

question 157

Multiple Choice

The table below displays hypothetical demand and supply schedules for the market for overnight parcel deliveries in Canada. TABLE 3-4 Refer to Table 3-4.Which of the following statements describes a likely event in the market for overnight parcel delivery? From Year 1 to Year 2,

• A)there was a rise in the price of jet fuel.
• B)there was a decrease in consumers' income.
• C)there was an improvement in technology for tracking overnight parcels.
• D)the price of regular parcel delivery decreased.
• E)the number of suppliers of overnight parcel delivery service increased.

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Definitions:

Direct Labour Cost

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

Manufacturing Overhead Cost

All indirect costs related to the manufacturing process, including utilities, depreciation, and maintenance of equipment and facilities.

Manufacturing Overhead

Expenses related to the manufacturing process that are not directly tied to specific products, such as salaries of supervisory staff and factory maintenance.

Direct Materials

Materials that are traceable to the production of specific goods or services and included in the cost of those goods or services.