Which of the Following Lower the Equilibrium Price of a Canoe

question 301

Multiple Choice

Which of the following lower the equilibrium price of a canoe?

• A) an increase in the supply of canoes
• B) an increase in the demand for canoes
• C) an increase in the quantity of canoes supplied
• D) a decrease in the supply of canoes
• E) Both answers A and B are correct.

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Definitions:

Fixed Factory Overhead

Costs related to the production that do not vary with the level of output, such as rent, salaries of permanent staff, and depreciation.

Variable Direct Labor

The portion of labor costs that varies directly with production volume.

Desired Profit

The profit amount that a company aims to earn in a specific period, typically set as a goal in financial planning.

Markup

The amount added to the cost price of goods to cover overhead and profit.