The Income of Consumers Increases

question 89

Multiple Choice

The income of consumers increases. and the wage rate in the DVD industry increases. As a result

• A)the price of DVDs stays the same and the quantity sold can either increase or decrease, depending on whether the change in demand is greater than the change in supply.
• B)the price of DVDs increases and the quantity sold can either increase, decrease or stay the same depending on whether the change in demand was greater than the change in supply.
• C)the equilibrium quantity sold increases and price can either increase or decrease, depending on whether the change in demand is greater than the change in supply.
• D)the equilibrium quantity sold can either increase or decrease and the price can either increase or decrease, depending on whether the change in demand was greater than the change in supply.

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Definitions:

Employees' Earnings Records

Documentation that details the wages or salaries earned by employees, including deductions and net pay, over a period.

Job Order Cost Sheets

Documents that track the direct materials, direct labor, and manufacturing overhead costs attributable to individual jobs or batches within a production process.

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor expenses.

Work in Process

Inventory items that are partially completed but not yet ready for sale, representing an intermediate stage in production.