Exhibit 19-4 ​

question 36

Multiple Choice

Exhibit 19-4
​

-Refer to Exhibit 19-4. As a consequence of the depicted change in supply of X, the demand curve for Y shifted from D₁ to D₂. What is true of the cross elasticity of demand for Y?

• A)E_c > 0
• B)E_c < 0
• C)E_c = 0
• D)It cannot be determined from the information provided.

---

Definitions:

Product Costs

The total costs associated with manufacturing a product, including direct labor, direct materials, and manufacturing overhead.

Opportunity Costs

The advantages forgone by selecting one option instead of another.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent or salaries.

Indirect Costs

Costs that are not directly traceable to a specific product or activity, such as overhead and administrative expenses.