Examlex

Solved

What Is the Effect on the Price and Quantity of a Product

question 246

Essay

What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?


Definitions:

Variable Expenses

Costs that fluctuate with business activity levels, such as raw material costs or utilities following production volumes.

Net Income

The total profit of a company after all expenses, including taxes and operational costs, have been subtracted from total revenue.

CVP Analysis

Short for Cost-Volume-Profit Analysis, a tool used to determine how changes in costs and volume affect a company's operating income and net income.

Contribution Margin Ratio

The ratio of sales income that surpasses variable expenses, showing the extent to which revenue assists in covering fixed costs and generating profit.

Related Questions