(Figure: Demand Curve) Which of the Following Statements Is TRUE

question 109

Multiple Choice

(Figure: Demand Curve) Which of the following statements is TRUE regarding the figure? I. At a price of $6 per unit, consumers are willing and able to buy 10 units. II. The maximum price demanders are willing to pay for 15 units is $3.75 per unit. III. The higher the price, the greater the quantity demanded. IV. At a price of $3.75 per unit, consumers are indifferent between buying 10 and 15 units.

• A) I only
• B) I and II only
• C) I, II, and III
• D) I, II, and IV

---

Definitions:

Manufacturing Departments

Specific divisions within a manufacturing facility, each responsible for different aspects of the production process.

Predetermined Overhead Rates

A rate calculated before a period begins, used to allocate manufacturing overhead costs to products based on a selected activity base, such as machine-hours.

Markup

The amount added to the cost of a product to determine the selling price, typically expressed as a percentage of the cost.

Machine-Hours

An indicator of manufacturing productivity that calculates the total hours machinery is active in the production cycle.