-S₀ and D₀ Represent the Original Supply and Demand Curves,and

question 8

Multiple Choice

-S₀ and D₀ represent the original supply and demand curves,and S₁ and D₁ represent the new curves.In this market:

• A)the equilibrium position has shifted from M to K
• B)the increase in demand is not as great as the increase in supply
• C)the new equilibrium price and quantity are both greater than originally
• D)point M shows the new equilibrium position
• E)the increase in demand equals the increase in supply

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Definitions:

Conversion Equivalent Units

A metric used in cost accounting to quantify the amount of work done on partially finished goods, measured in full unit equivalents.

First-In, First-Out

A method of valuing inventory in which the first items bought or manufactured are the first ones to be sold or utilized.

Conversion Costs

The combined costs of direct labor and manufacturing overhead required to convert raw materials into finished products.

Equivalent Units

A term used in cost accounting to indicate a standard amount of work done on an incomplete unit, making it comparable to complete units.