Use the Following Information for Questions

question 4

Multiple Choice

Use the following information for questions:
Direct Sales Inc.offers a two-year warranty against failure of its products.The estimated liability is 4% of sales in the year of sale and 6% in the second year.Sales for 2010 and 2011 were: $2,500,000 and $2,800,000, respectively.They incurred no warranty costs in 2010 but in 2011 they spent $175,000 on repairs related to the warranties from 2010 and 2011.
-The warranty liability as at the year-end 2010 was:

• A)$0
• B)$100,000
• C)$150,000
• D)$250,000

Analyze the impact of technological changes and input prices on supply and market equilibrium.

Interpret linear equations representing demand and supply curves in the context of competitive markets.

Comprehend the implications of changes in factors affecting demand, such as income levels and prices of related goods.

Delineate the concept of market equilibrium and the conditions for surpluses and shortages.

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Definitions:

Anecdotal Evidence

Information derived from personal accounts, observations, or stories rather than from scientific analysis or hard data.

Statistical Evidence

Information derived from statistical procedures that is used to support or refute an assertion, hypothesis, or claim.

Persuasive Impact

The effect of communication or argumentation in convincing or influencing others to change their beliefs, attitudes, or behaviors.

Dependent Variable

In an experimental study, it is the variable being tested and measured, expected to change as a result of manipulations to the independent variable.