Refer to the Following Table Showing a Demand Schedule $\begin{array}{ll}\text { Price } & \text { Quantity } \\ &\text { demanded } \\\$ 200 &1000\\150 & 1400 \\100 & 1800\end{array}$

question 59

Multiple Choice

Refer to the following table showing a demand schedule:

$\begin{array}{ll}\text { Price } & \text { Quantity } \\ &\text { demanded } \\\$ 200 &1000\\150 & 1400 \\100 & 1800\end{array}$
-If price rises from $100 to $150,

• A) arrows representing the price and quantity effects both point upward.
• B) an arrow representing the price effect points upward and is shorter than an arrow for the quantity effect, which points downward.
• C) total revenue moves up, or increase, as indicated by the direction of the arrow representing the price effect.
• D) the arrow representing the price effect points down and the arrow representing the quantity effect points up.
• E) both c and d

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, rent, and salaries for administrative staff, not directly tied to the production of a specific product.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to products based on a chosen activity base, like labor hours or machine hours.

Machine-Hours

A measure of production output or activity based on the number of hours machines are operational.

Work in Process

Goods that are under production but not yet finalized.