The Following Figure Shows the Demand Curve, D, and the Supply

question 130

Multiple Choice

The following figure shows the demand curve, D, and the supply curve, S, for calculators in Barylia in four different scenarios. Barylia is open to free trade.

-Refer to the figure above.Let the world price of calculators be $4.In what scenario(s) does Barylia become a net exporter of calculators?

• A) (1)
• B) (2)
• C) (1) and (3)
• D) (2), (3), and (4)

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Definitions:

Unfavorable

A term used to describe a variance or difference that negatively impacts financial performance.

Labor Rate Variance

The difference between the expected cost of labor at standard rates and the actual cost of labor incurred.

Raw Materials Quantity Variance

The difference between the expected amount of raw materials required for production and the actual amount used, evaluated in terms of cost.

Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, based on the standard hours worked and standard labor rate.