Which of the Following Will Reduce the Supply of Motorcycles

question 17

Multiple Choice

Which of the following will reduce the supply of motorcycles?

• A) an increase in the population age 16 to 35, the primary consumers of motorcycles
• B) an increase in taxes imposed on motorcycle producers
• C) a technological improvement reducing the production costs of motorcycles
• D) a government study that reveals motorcycle riders, on average, live 10 years longer than those who don't ride motorcycles

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Definitions:

Administrative Expense

Expenses related to the general operation of a business, such as office salaries and utilities, not directly tied to production.

Selling Expense

Costs incurred directly from selling goods or services, including advertising, sales commissions, and store maintenance.

Cost of Goods Sold

Cost of Goods Sold (COGS) measures the direct costs associated with producing goods that a company sells during a period, including materials and labor.

Accounting Equation

The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Equity, representing the relationship between a company's resources and claims on those resources.