Which of the Following Events Would Cause Both the Equilibrium

question 159

Multiple Choice

Which of the following events would cause both the equilibrium price and equilibrium quantity of number two grade potatoes to increase if number two grade potatoes are an inferior good?

• A)An increase in consumer income
• B)A decrease in consumer income
• C)Greater government restrictions on agricultural chemicals
• D)Fewer government restrictions on agricultural chemicals

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Definitions:

Traditional Volume-based Costing System

A costing method that allocates costs to products based on the volume of resources they use.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities, thereby providing more accurate insights into the costs associated with producing a product or service.

Indirect Costs

Costs that are not directly attributable to a specific job, product, or activity, making them difficult to trace.

Complexity

The state or quality of being intricate or complicated, often making tasks or understanding more difficult.