An Increase in the Demand for Houses

question 402

Multiple Choice

An increase in the demand for houses

• A)increases the equilibrium wage of carpenters and increases the value of carpenters' marginal product of labor.
• B)increases the equilibrium wage of carpenters and decreases the value of carpenters' marginal product of labor.
• C)decreases the equilibrium wage of carpenters and increases the value of carpenters' marginal product of labor.
• D)decreases the equilibrium wage of carpenters and decreases the value of carpenters' marginal product of labor.

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Definitions:

Variable Expense Ratio

The ratio of variable costs to total sales, indicating how variable expenses change with sales levels.

Contribution Format

A way of presenting an income statement where variable costs are deducted from sales to show contribution margin before fixed costs are subtracted to show net operating income.

Income Statement

An income statement is a financial document that summarizes a company's revenues, expenses, and profits over a specific period, showing its financial performance.

Selling Price

The amount charged to the customer for a product or service, determining the revenue generated from sales.