If a Demand Curve and a Supply Curve Can Be

question 67

Multiple Choice

If a demand curve and a supply curve can be stated functionally as Qd = 500 - 0.1P and Qs = 440 + 0.4P,respectively,then the equilibrium quantity and price (Q,P) would be

• A)150; 150.
• B)50; 176.
• C)150; 485.
• D)488; 120.
• E)940; 0.4.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales over a short period.

Total Fixed Costs

The cumulative amount of all expenses that do not change in total despite changes in the activity level or volume of production over a certain period.

Activity Is Higher

A state indicating increased levels of operations or actions in a given context.

Variable Overhead Efficiency Variance

The difference between the actual level of activity (direct labor-hours, machine-hours, or some other base) and the standard activity allowed, multiplied by the variable part of the predetermined overhead rate.