If the Demand for a Product Increases,then We Would Expect

question 267

Multiple Choice

If the demand for a product increases,then we would expect

• A) equilibrium price to increase and equilibrium quantity to decrease.
• B) equilibrium price to decrease and equilibrium quantity to increase.
• C) equilibrium price and equilibrium quantity both to increase.
• D) equilibrium price and equilibrium quantity both to decrease.

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Definitions:

Scanlon Plan

A type of gainsharing program that rewards employees for productivity improvements and cost savings within a company.

Labor Costs

Expenses associated with compensating employees, including wages, benefits, and taxes.

Quality Standards

Established benchmarks of excellence and guidelines that dictate the expected level of product or service performance within an industry.

Standard Production Time

The set amount of time expected for the completion of a specific task or the manufacture of a product under normal conditions.