Suppose That the Market Demand Curve for Sunflowers Is a Function

question 72

Multiple Choice

Suppose that the market demand curve for sunflowers is a function of the price of sunflowers, the price of roses, and income. If the partial derivative of quantity demanded of sunflowers with respect to income is negative,:

• A) sunflowers are a normal good.
• B) roses are a normal good.
• C) sunflowers are an inferior good.
• D) roses are an inferior good.

---

Definitions:

Conversion Costs

The combined costs of labor and overhead that are required to transform raw materials into finished products.

Cost Per Equivalent Unit

Calculation of the cost to produce a single unit, taking into account units that are partially completed; particularly useful in process costing systems.

Processing Department

A unit or stage within a manufacturing operation where a particular process or set of processes is performed, transforming raw materials into finished products.

Equivalent Units

A measure used in cost accounting to express the amount of work done during a period in terms of fully completed units of output.