-In the Above Figure, If the Demand Curve Is D2

question 368

Multiple Choice

-In the above figure, if the demand curve is D2, then

• A) the equilibrium price will be P1 and the equilibrium quantity will be Q2.
• B) the equilibrium price will be P1 and the equilibrium quantity will be Q1.
• C) there will be a shortage equal to Q2 - Q1.
• D) an increase in price will shift the demand curve to D3.

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Definitions:

Direct Costing

A method in managerial accounting that includes variable costs directly attributable to the production of a product in the cost of goods sold, excluding fixed costs.

Full Costing

An accounting method that includes all direct and indirect costs in the price of a product or service.

Carrying Cost

The total costs associated with holding inventory or assets, including storage, insurance, and taxes.

Administrative Costs

Expenses related to the general operation of a business, including salaries of executive officers, legal and clerical salaries, and other general expenses.