Suppose the Demand for Digital Video Recorders (DVRs)is Given by Q

question 143

Multiple Choice

Suppose the demand for Digital Video Recorders (DVRs) is given by Q = 250 - .25p + 4pc,where Q is the quantity of DVRs demanded (in 1000s) ,p is the price of a DVR,and pc is the price of cable television.How much does the quantity demanded for DVRs change if the p rises by $40?

• A) drops by 10,000 DVRs
• B) increases by 16,000 DVRs
• C) drops by 2,500 DVRs
• D) increases by 4,000 DVRs

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Definitions:

Standard

Accepted criteria or expected specifications established as a model for measuring quality, performance, or compliance.

Budgeted

The process of creating a plan for a company's spendings and incomes over a specific period, typically including projected revenues, expenses, and net income.

Direct Labor Time Variance

The difference between the actual hours worked and the standard hours allowed for the work done, multiplied by the standard labor rate.

Direct Labor

The cost of wages for employees who directly manufacture or produce goods.