When Using a Flexible Budget, a Decrease in Activity Within

question 158

Multiple Choice

When using a flexible budget, a decrease in activity within the relevant range:

• A) decreases variable cost per unit.
• B) increases variable cost per unit.
• C) decreases total costs.
• D) increases total costs.

---

Definitions:

Excess Supply

A condition in the market where the quantity of a good or service supplied is greater than the quantity demanded at the current price.

Price Of Burritos

The amount of money required to purchase one unit of a burrito, determined by factors such as ingredients, preparation costs, and market demand.

Demand Shifts

Changes in consumer desire that lead to an increase or decrease in the quantity demanded at every price point.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices within a given time period.