Use the Figure Below to Answer the Following Question(s)

question 351

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 3-13

Refer to Figure 3-13. The market for margarine was initially in equilibrium at point e. Other things constant, a decrease in the price of butter, a close substitute for margarine, would likely move the equilibrium in this market toward point

• A) r.
• B) s.
• C) t.
• D) u.

---

Definitions:

Cost Driver

A factor that causes a change in the cost of an activity, such as machine-hours or labor hours, used in determining pricing and profitability.

Flexible Budgets

Budgets that adjust or flex with changes in the volume or level of activity.

Measure of Activity

An identifier used to gauge the level or intensity of activity within a certain process or system.

Planning Budget

A budget designed for a specific level of activity, often used as a tool for performance evaluation and cost management.