This Table Shows the Demand and Supply Schedule of a Good

question 113

Multiple Choice

This table shows the demand and supply schedule of a good.
According to the table shown,the equilibrium in this market will occur at:

• A)a price of $1.50 and a quantity of 62.
• B)a price of $1.50 and a quantity of 31.
• C)a price of $0.00 and a quantity of 75.
• D)Cannot be determined without more information.

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Definitions:

Fixed Manufacturing Expenses

Costs that do not vary with the volume of production, such as rent, depreciation of manufacturing equipment, and salaries of permanent factory staff.

Selling and Administrative Expenses

Expenses incurred from selling products or services and managing the business, excluding production costs.

Variable Selling

Expenses that change in proportion with the volume of sales, such as commissions or shipping costs.

Special Order

An order for goods or services that is outside the company's normal production or service delivery operations.