If Good Weather Conditions Results in a Larger Than Normal

question 297

Multiple Choice

If good weather conditions results in a larger than normal crop of peaches, then the

• A)equilibrium price of peaches rises and the equilibrium quantity of peaches increases.
• B)equilibrium price of peaches falls and the equilibrium quantity of peaches increases.
• C)demand curve for peaches shifts leftward.
• D)increase in the supply of peaches induces a greater demand for peaches, so that the equilibrium price rises and the equilibrium quantity increases.
• E)equilibrium price of peaches falls and the equilibrium quantity of peaches decreases.

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Definitions:

Direct Material

Materials that can be directly associated with the production of goods, directly entering into and being a significant component of the finished product.

Kilos

A metric unit of mass or weight equal to one thousand grams.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours worked, multiplied by the standard labor rate.

Direct Labor-Hours

The total amount of labor time directly involved in manufacturing a product or delivering a service, often used as a basis for allocating overhead costs.