Table 4-7 The Demand Schedule Below Pertains to Sandwiches Demanded Per Week

question 410

Multiple Choice

Table 4-7
The demand schedule below pertains to sandwiches demanded per week.

-Refer to Table 4-7.Suppose Charlie,Maxine,and Quinn are the only demanders of sandwiches.Also suppose the following:
• x = 2
• the current price of a sandwich is $5.00
• the market quantity supplied of sandwiches is 10
• the law of supply applies to the supply of sandwiches
Then

• A) there is a shortage of 5 sandwiches and the price would be expected to rise from its current level of $5.00.
• B) there is a shortage of 5 sandwiches and the price would be expected to fall from its current level of $5.00.
• C) there is a surplus of 5 sandwiches and the price would be expected to rise from its current level of $5.00.
• D) there is a surplus of 5 sandwiches and the price would be expected to fall from its current level of $5.00.

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Definitions:

Labor Costs

The total sum of all wages paid to employees, as well as the costs of employee benefits and payroll taxes incurred by an employer.

Pay Range

A set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job or a job within a particular pay grade.

Minimum Pay

The lowest legal salary that an employer can pay to an employee.

Maximum Pay

The highest salary or wage rate that an employee can earn in a specific job or position.