Consider the Global Market for Some Mineral,X

question 49

Multiple Choice

Consider the global market for some mineral,X.In January,2014,the equilibrium price and quantity were P = $27 per unit and Q = 140 million units.In January,2016,the equilibrium price and quantity were P = $35 per unit and Q = 110 million units.Which of the following is the best possible explanation for this change in market equilibrium?

• A)There has been an increase in demand for mineral X.
• B)There has been a decrease in supply of mineral X.
• C)There has been a decrease in global demand for mineral X.
• D)There has been a simultaneous increase in demand and increase in supply for mineral X.
• E)there has been a simultaneous increase in supply and decrease in demand for mineral X.

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Definitions:

Quality Raw Materials

High-standard, unprocessed or minimally processed inputs used in the production of goods, directly affecting the quality of the finished product.

Labour Time Standard

A benchmark or norm established for the amount of time required to perform a specific task or activity under normal working conditions.

Direct Material Price Variance

The difference between the actual cost of direct materials and the expected (or standard) cost.

Direct Labour Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, based on the standard wages paid for that labor.