If Consumers Are Willing and Able to Pay a Higher

question 144

Multiple Choice

If consumers are willing and able to pay a higher price to obtain any particular quantity, then

• A) demand has increased.
• B) supply has increased.
• C) demand has decreased.
• D) supply has decreased.
• E) both demand and supply have decreased.

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Definitions:

Servicing Materials

Materials and supplies used in the maintenance and repair of machinery or equipment during the production process or in providing services.

Flexible Budget

A budget designed to adapt to variations in activity or volume levels.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or sales activity within a certain period.

Activity Level

A measure of the volume of production or operations, often influencing costs and used to adjust budgets or forecasts in business.