Examlex

Solved

Prices of Microbrewery Beer (Assume That This Is a Normal

question 57

Multiple Choice

Prices of microbrewery beer (assume that this is a normal good) have risen steadily in recent years.Over this same period, prices for fermenting vats used in beer making have also risen and consumer incomes have fallen.Which of the following best explains the rising prices of microbrewery beer?


Definitions:

Selling Price

The amount of money for which a product or service is sold to a customer.

Cost

The amount of money required to purchase something or the expenditure incurred on the production of a good or service.

New Balance

The amount remaining in an account after all debits and credits have been accounted for during a specified period.

Mark-up

An increase in the original price of items meant to compensate for overhead expenditures and ensure profit.

Related Questions