The Following Data Pertain to Activity and Utilities Costs for Two

question 96

Multiple Choice

The following data pertain to activity and utilities costs for two recent years:

Using the high-low method,what is the cost formula for utilities?

• A) $1.20 per unit.
• B) $1.50 per unit.
• C) $3,000 plus $3.00 per unit.
• D) $4,500 plus $0.75 per unit.

---

Definitions:

Aggregate Demand

The sum of economic demand for every product and service, evaluated at a unified price point throughout a defined temporal stretch.

Full Employment

This is a situation in an economy where all available labor resources are being used in the most efficient way possible, typically implying a very low unemployment rate.

Aggregate Demand Curve

A graphical representation that shows the total quantity of goods and services demanded across all levels of prices in an economy.

Loanable Funds Effect

A theory that describes the market interaction between the demand for and supply of loanable funds, influencing interest rates.