The Table Below Shows the Demand Schedule for Museum Admissions

question 80

Multiple Choice

The table below shows the demand schedule for museum admissions in a small city. $\begin{array}{|c|c|}\hline \begin{array}{c}\text { Price } \\\text { (per visit } \\\text { per person) }\\\end{array} & \begin{array}{c}\text { QuantityDemanded } \\\text { (thousands of }\\\text { person-visits per year) }\end{array} \\\hline \$ 10 & 2 \\\hline \$ 8 & 4 \\\hline \$ 6 & 6 \\\hline \$ 4 & 8 \\\hline \$ 2 & 10 \\\hline\end{array}$ TABLE 4- 1
-Refer to Table 4- 1. Between the prices of $4 and $6 the price elasticity of demand is

• A) 0.40.
• B) 1.40.
• C) 1.00.
• D) 0.50.
• E) 0.71.

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Definitions:

Direct Materials Quantity Variance

The difference between the actual quantity of direct materials used in production and the standard quantity expected to be used.

Standard Labor Hours

The predetermined amount of time expected to be required to complete a task or produce a unit of goods under normal conditions.

Direct Materials Price Variance

The difference between the actual cost of materials used in production and the expected (standard) cost, indicating how effectively a company controls its raw material expenses.

Standard Labor Hours

The anticipated amount of time required to produce a unit of output under normal conditions, used in budgeting and variance analysis.