FIGURE 3-5 -Refer to Figure 3-5.Ceteris Paribus,if Demand Were to Decrease,this Would

question 73

Multiple Choice

FIGURE 3-5
-Refer to Figure 3-5.Ceteris paribus,if demand were to decrease,this would lead to

• A)an increase in equilibrium price and an increase in equilibrium quantity.
• B)a decrease in equilibrium price and a decrease in equilibrium quantity.
• C)an increase in equilibrium price and a decrease in equilibrium quantity.
• D)a decrease in equilibrium price and an increase in equilibrium quantity.
• E)no change in equilibrium price or quantity.

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Definitions:

Unfavorable

A situation or condition that is disadvantageous, harmful, or detrimental, often used in financial contexts to describe variances or outcomes that negatively impact performance.

Labor Rate Variance

The difference between the actual labor rate paid and the standard labor rate expected, multiplied by the actual hours worked.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, reflecting efficiency in material use.

Variable Overhead Efficiency Variance

The difference between the actual hours taken to produce something and the standard hours expected, multiplied by the variable overhead rate.