Exhibit 3-2                  Good X

question 133

Multiple Choice

Exhibit 3-2

                 Good X
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Refer to Exhibit 3-2. Suppose equilibrium is at point A. Something then changes and equilibrium becomes point C. Which of the following is consistent with the change in equilibrium from point A to C (assuming that good X is a normal good) ?

• A)There was an increase in income and production technology advanced.
• B)There was a decrease in income and production technology advanced.
• C)There was an increase in preferences for good X and an increase in wage rates (a relevant resource price.)
• D)There was an improvement in technology in the production of good X and an increase in wage rates (a relevant resource price.)

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Definitions:

Expected Unit Sales

The number of units of product a business anticipates selling over a specific period, based on forecasts.

Inventory On Hand

Inventory on hand is the total quantity of goods, materials, and products that a company has available at any given time for use in production or sale.

Production Units

The quantity of items or goods produced during a specific period, serving as a measure of a company's manufacturing activity.

Sales Budget

A detailed outline of a company's sales expectations for a certain period, including projected revenue and the resources needed to achieve those sales.