With Demand Remaining Unchanged, Which of the Following Is Likely

question 84

Multiple Choice

With demand remaining unchanged, which of the following is likely to happen if the supply curve shifts to the left?

• A) The equilibrium price and quantity will rise.
• B) The equilibrium price will rise and the equilibrium quantity will fall.
• C) There will be no change in the equilibrium price or quantity.
• D) The equilibrium price and quantity will fall.

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Definitions:

Abnormal Spoilage

Waste or spoilage that exceeds the normal or expected levels during the manufacturing process.

Weighted Average Method

An inventory valuation method that assigns a weighted average cost to each unit of inventory, taking into account both the cost of goods available for sale and the number of units available.

Unit Costs

The cost incurred to produce, store, and sell one unit of a product or service.

Process Costing

An accounting methodology used to allocate costs to units of production in continuous or repetitive processes.