Table 6-3 The Following Table Contains the Demand Schedule and Supply Schedule

question 670

Multiple Choice

Table 6-3
The following table contains the demand schedule and supply schedule for a market for a particular good. Suppose sellers of the good successfully lobby Congress to impose a price floor $2 above the equilibrium price in this market.
-Refer to Table 6-3. How many units of the good are sold after the imposition of the price floor?

• A)5
• B)9
• C)10
• D)15

---

Definitions:

Direct Labour Cost

A cost that can be directly attributed to the production of specific goods or services, such as wages paid to employees who physically produce a product.

Overhead Applied

The portion of indirect costs allocated to a specific product or department within a company, based on a predetermined overhead rate.

Cost of Goods Sold

The immediate expenses linked to the creation of products sold by a business, encompassing both materials and labor costs.

Job Costing

A cost accounting method used to track costs to a specific job or project, allowing companies to calculate its profitability.