Suppose Demand Is Given By $Q ^ { d } = 500 - 15 P \text { and supply is given by } Q ^ { s } = 5 P$

question 69

Multiple Choice

Suppose demand is given by $Q ^ { d } = 500 - 15 P \text { and supply is given by } Q ^ { s } = 5 P$ . If the government imposes a $30 price floor, the excess supply will be

• A)25
• B)50
• C)100
• D)150

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Definitions:

Unit Product Cost

The cost calculated per unit, combining all expenses including materials, labor, and overhead related to the production.

Variable Costing

A method of accounting that comprises solely of variable production expenses, such as direct materials, direct labor, and variable manufacturing overhead, in the calculation of product costs.

Variable Costing

An accounting method that includes only variable costs (costs that change with production levels) in product costs and treats fixed costs as period expenses.

Unit Product Cost

The total cost incurred to produce, store, and sell one unit of a product, including material, labor, and overhead.