A Surplus Will Occur If a ________ Is Set ________

question 152

Multiple Choice

A surplus will occur if a ________ is set ________ the equilibrium price.

• A) price floor; below
• B) price floor; above
• C) price ceiling; above
• D) price ceiling; below

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Definitions:

Direct Materials

Fundamental components directly linked to the creation of specific goods or offerings.

Direct Labor Costs

Expenses that are directly attributable to the production of goods or services, including wages and benefits for production workers.

Variable Costs

Charges that adjust based on the volume of production or sales, such as labor and materials expenses.

Variable Costs

Variable costs are expenses that change in proportion to the activity of a business, such as the cost of raw materials used in production.