-Consider the Market Represented by the Schedule in Table 2

question 54

Multiple Choice

-Consider the market represented by the schedule in Table 2.4. At a price of $2 per unit,

• A) the quantity purchased is 1,000 units.
• B) the quantity sold is 700 units.
• C) there is a surplus of 300 units.
• D) there will be a tendency for the price to decrease.
• E) there is a surplus of 700 units.

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Definitions:

Factory Overhead

All the costs associated with operating a factory that are not directly tied to specific units of production, such as utilities, maintenance, and salaries of non-production staff.