Which of the Following Is Likely to Cause the Demand

question 140

Multiple Choice

Which of the following is likely to cause the demand curve for cars to shift to the left?

• A) A rise in the price of gasoline
• B) An increase in the economy's national income
• C) An increase in the cost of production, leading to an increase in the price of cars
• D) A rise in the price of cars

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Definitions:

Capacity

The maximum output a system can produce over a given period of time. It's crucial for planning and efficiency improvement.

Machine-Hours

A measure of production time or capacity based on the number of hours machines are in operation.

Unused Capacity

The available production or service capability that is not being utilized by a business.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to individual jobs or products based on a certain activity base, such as machine hours or labor hours.