The Figure Given Below Represents the Equilibrium in the Market

question 88

Multiple Choice

The figure given below represents the equilibrium in the market for bicycles under different demand and supply situations. The vertical axis in each panel shows the price of bikes.?Figure 3.2

-Refer to Figure 3.2. Which of the following panels represents the equilibrium situation in the bicycle market, if there were an increase in the price of metal used in the production of bicycles?

• A) Panel A
• B) Panel B
• C) Panel C
• D) Panel D
• E) Panel E

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Definitions:

Manufacturing Overhead Budget

An estimation of all manufacturing costs excluding direct materials and direct labor, planned for a specific period.

Direct Labor-Hour

A measure of the amount of time, typically in hours, that direct labor work directly on producing goods.

Budgeted Overhead

An estimate of all costs associated with production that are not direct labor or direct materials costs, projected for a specific period.

Cash Disbursements

A financial record of money being paid out or disbursed by a company, usually part of the cash outflow in its cash flow statement.