Two Events Occur Simultaneously in the Market for Automobiles: (1)an

question 159

Multiple Choice

Two events occur simultaneously in the market for automobiles: (1) an improvement in assembly line technology and (2) the economy enters a recession (which decreases consumers' income) .An economist would predict with certainty that

• A)equilibrium quantity will rise
• B)equilibrium quantity will fall
• C)equilibrium price will rise
• D)equilibrium price will fall
• E)the equilibrium price will remain the same

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Definitions:

Manufacturer Budget

A detailed financial plan that projects the production costs, revenues, and resource requirements for a manufacturing company, subset of the master budget.

Master Budgets

A comprehensive financial plan for an organization, including all individual budgets related to sales, production, overhead, and capital expenditures.

Budget Coordinator

A person responsible for preparing, managing, and overseeing the budgeting process within an organization, ensuring financial resources are allocated efficiently.

Direct Materials Budget

A financial plan that estimates the raw materials needed for production and the associated costs for a specific period.