When a Demand Schedule Is Drawn as a Graph

question 14

Multiple Choice

When a demand schedule is drawn as a graph,

• A)price is measured on the vertical axis.
• B)quantity is measured on the horizontal axis.
• C)the resulting curve has a negative slope.
• D)the other variables (besides price and quantity) are held constant.
• E)All of the above are correct.

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Definitions:

Weighted-Average

A calculation method that multiplies each component by a weight reflecting its importance and sums these products to get an average.

Equivalent Units

A concept used in cost accounting to express the amount of work done on partially finished goods in terms of fully finished goods.

Production Process

The sequence of operations or steps taken to convert raw materials into finished goods.

Weighted-Average Method

An inventory costing method that assigns a weighted average cost to items, blending the costs of similar items.