According to the Supply and Demand Model,when the Cotton Gin

question 19

Multiple Choice

According to the supply and demand model,when the cotton gin was invented,if all else was held constant,we would expect the equilibrium price of cotton to ________ and the equilibrium quantity of cotton to ________.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decrease
• E) remain the same; increase

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Definitions:

Operations

The day-to-day activities required for continued business functioning, focusing on creating and delivering products or services.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead cost to products, calculated before the manufacturing process begins based on estimated costs.

Overapplied Overhead

A situation where the allocated overhead costs exceed the actual overhead expenses incurred.

Machine-Hours

A unit of measure indicating the total time production machinery is operated, used in calculating manufacturing costs and efficiencies.