Figure 4-4 -Refer to Figure 4-4.The Figure Above Represents the Market for Represents

question 182

Multiple Choice

Figure 4-4

-Refer to Figure 4-4.The figure above represents the market for pecans.Assume that this is a competitive market.If the price of pecans is $3, what changes in the market would result in an economically efficient output?

• A)The price would increase, the quantity supplied would decrease, and the quantity demanded would increase.
• B)The quantity supplied would increase, the quantity demanded would decrease, and the equilibrium price would increase.
• C)The price would increase, the demand would decrease, and the supply would increase.
• D)The price would increase, the quantity demanded would decrease, and the quantity supplied would increase.

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Definitions:

Merchandise Purchases

Transactions involved in acquiring goods for the purpose of resale during the normal course of business.

Cost Of Goods

The direct costs attributable to the production of the goods sold by a company, including materials and labor but excluding indirect expenses.

Beginning Inventory

The value of a company's inventory at the start of an accounting period.

Production Budget

is a financial plan that estimates the cost of production based on projected product volumes, including costs of materials, labor, and overhead.