Which of the Following Will Increase the Demand for Motorcycles

question 78

Multiple Choice

Which of the following will increase the demand for motorcycles?

• A) A fall in the price of motorcycles.
• B) A fall in insurance rates for motorcycles.
• C) A fall in the price of automobiles.
• D) A fall in buyers' incomes (assuming motorcycles are a normal good).
• E) A fall in consumer preference for motorcycles.

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Definitions:

Machine-Hours

A measurement of the amount of time machinery is operated, used in calculating production costs and efficiency.

Manufacturing Overhead

All manufacturing costs that are not directly attributable to a product, including indirect materials, labor, and other expenses.

Direct Labor-Hours

The total hours worked by employees who are directly involved in the production of goods.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated before the period begins based on estimated costs and activities.