An Increase in Supply Will Cause a Decrease in Price

question 38

True/False

An increase in supply will cause a decrease in price, which will cause an increase in demand.

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Definitions:

Factory Overhead

All indirect costs associated with manufacturing, including utilities, maintenance, and management salaries.

Payroll Taxes

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Indirect Labor

Labor costs associated with the production process that cannot be directly linked to specific units or products, such as maintenance personnel salaries.

Manufacturing Equipment

Machines and tools used in the process of producing goods.