If the Demand for Bicycles Increases

question 564

Multiple Choice

If the demand for bicycles increases,

• A) the quantity demanded will decrease.
• B) equilibrium price will increase and equilibrium quantity will decrease.
• C) equilibrium price will decrease and equilibrium quantity will increase.
• D) quantity supplied will increase.
• E) quantity supplied will decrease.

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Definitions:

Allocated

The process of assigning or distributing resources or expenses to various accounts or departments based on a predetermined criteria.

Factory Overhead Rate

A measure used to estimate the total cost of manufacturing overhead per unit produced, accounting for indirect costs not directly tied to production.

Direct Labor Hours

The number of hours worked by employees that are directly involved in the manufacturing process.

Production Department

The section within a manufacturing company responsible for the actual production of goods.