Use the Following to Answer Questions: Table: Equilibrium Adjustment -(Table: Equilibrium Adjustment) Refer to the Table

question 68

Multiple Choice

Use the following to answer questions: Table: Equilibrium Adjustment $$\begin{array} { c c c } \hline \text { Price } & \text { Quantity Demanded } & \text { Quantity Supplied } \\\hline \$ 10 & 100 & 160 \\8 & 120 & 145 \\6 & 130 & 130 \\4 & 140 & 115 \\2 & 150 & 100 \\\hline\end{array}$$
-(Table: Equilibrium Adjustment) Refer to the table. If the price in the free market is $2, then a:

• A) surplus of 50 units would exist, and price would fall.
• B) surplus of 50 units would exist, and price would rise.
• C) shortage of 50 units would exist, and price would rise.
• D) shortage of 50 units would exist, and price would fall.

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Definitions:

Total Manufacturing Costs

Sum of all costs directly involved in the manufacturing of a product, including raw materials, labor, and overhead expenses.

Direct Materials Used

The raw materials directly traced to the manufacturing of a product and included in its cost.

Actual Overhead

The actual incurred costs associated with running a production or operation, excluding direct materials and direct labor.

Cost of Goods Sold

Costs directly related to the manufacturing of goods a company sells, which cover materials and workforce expenses.