Violations of the Law of Demand Are Assumed to Occur

question 160

Multiple Choice

Violations of the law of demand are assumed to occur

• A)regularly.
• B)only when goods are Giffen goods.
• C)only when the substitution effect dominates the income effect.
• D)All of the above are correct.

---

Definitions:

Plantwide Predetermined

A single overhead rate calculated for an entire production facility based on estimated costs and activity levels.

Machine-Hours

A measure of the amount of time a machine is operated, used in allocating machine costs to units of production.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual products or job orders based on a certain activity base, such as machine hours or labor hours.

Machine-Hours

A unit of measure that represents the operational time of a machine, used in allocating manufacturing overhead based on the time machines are run.