Use the Following Diagram to Answer the Following Questions

question 23

Multiple Choice

Use the following diagram to answer the following questions.

-Refer to Unit. If the price of housing is currently $90,000 per unit:

• A) there will be a tendency for price to rise.
• B) there will be a tendency for price to fall.
• C) prices will remain constant.
• D) markets will clear.

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Definitions:

Employee Salaries and Wages

Payments made to employees for their labor, including both fixed salaries and variable wages.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for more accurate forecasting and planning.

Planning Budget

A budget created at the beginning of the budgeting period that is valid only for the planned level of activity.

Budgeted Overhead Cost

The anticipated indirect costs of production planned for a specific period, often part of a company's operating budget.