-When a Shortage Exists in a Market

question 190

Multiple Choice

-When a shortage exists in a market

• A) the market clearing price is above equilibrium and market forces will cause the price to fall.
• B) the quantity demanded is less than the quantity supplied at the existing price.
• C) the current price is below the market clearing price and the price will rise.
• D) the quantity supplied is greater than the quantity demanded at the current price.

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Definitions:

Forming Department

A specific section within a manufacturing facility where raw materials are shaped or formed into parts for further assembly or production processes.

Assembly Department

A division within a manufacturing plant where components are assembled into final products, often involving various processes and equipment.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated before the costs are incurred based on estimated costs and activity levels.

Direct Labor-Hours

The total hours worked by employees that are directly involved in the production of goods or the provision of services.