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

question 27

Multiple Choice

The following figure shows the demand curve, D, and the supply curve, S, for calculators in Barylia. The world price of calculators is $40.

-Refer to the figure above.Which of the following statements is true?

• A) Barylia as a whole gained from opening up to free trade.
• B) Barylia as a whole lost from opening up to free trade.
• C) The buyers of calculators in Barylia gained from opening up to free trade.
• D) The firms in Barylia that manufactured calculators lost from opening up to free trade.

Understand the conditions under which different wage systems are permissible, such as merit and seniority systems.

Identify the legal requirements and protections for employees under the Fair Labor Standards Act.

Understand the concept of mark-up on cost and its calculation.

Comprehend the concept of mark-up on selling price and how to derive it.

---

Definitions:

Transfer Price

The price at which goods and services are sold between divisions within the same company or to a subsidiary.

Outside Supplier

An external entity that provides goods or services to a company, not part of the company’s own operations.

Idle Capacity

The portion of a manufacturing or service facility's resources that is not currently being utilized to its full potential.

Transfer Price

The price one subunit of a company charges for a product or service supplied to another subunit of the same organization.