If Guarana (A Key Ingredient in Many Energy Drinks)becomes Less

question 61

Multiple Choice

If guarana (a key ingredient in many energy drinks) becomes less expensive, we would expect

• A)the supply curve for energy drinks to shift to the right.
• B)the supply curve for energy drinks to shift to the left.
• C)the demand curve for energy drinks to shift to the right.
• D)the demand curve for energy drinks to shift to the left.

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Definitions:

Kilowatt Hours

A unit of energy equivalent to one kilowatt of power expended for one hour, commonly used to measure electricity consumption.

Hourly Fee

A billing method where a service provider charges based on the number of hours worked.

Flat Fee

A charged price for a service that does not vary with usage or time.

Overhead

All manufacturing costs that cannot be directly traced to a product. Overhead includes indirect labor and materials, plant depreciation, insurance and property taxes, plant management salaries, and so forth. See Indirect Cost Pool.