What Would Happen to the Equilibrium Price and Quantity of Lattés

question 62

Multiple Choice

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk,which is used to make lattés,and scientists discovered that coffee prevents heart attacks?

• A)Both the equilibrium price and quantity would increase.
• B)Both the equilibrium price and quantity would decrease.
• C)The equilibrium price would increase,and the effect on equilibrium quantity would be ambiguous.
• D)The equilibrium quantity would increase,and the effect on equilibrium price would be ambiguous.

Prepare journal entries for transactions related to a process costing system.

Understand the role of cost reconciliation reports in process costing and how to interpret them.

Evaluate the assignment of costs to units in work in process and completed units.

Apply the weighted-average method in process costing to determine equivalent units of production.

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