If the Quantity of Housing Supplied in a Community Is

question 149

Multiple Choice

If the quantity of housing supplied in a community is less than the quantity of houses demanded, the existing price:

• A) will remain unchanged.
• B) will fall to clear the market.
• C) will either fall or remain unchanged.
• D) is below the market equilibrium price.

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Definitions:

Idle Capacity

Unused production capability in a given period, often resulting in inefficiency and increased costs.

Supervisory Wages

Costs associated with the salaries of supervisory personnel, considered part of manufacturing overhead in production environments.

Activity-based Costing

Activity-based costing is an accounting method that assigns costs to products based on the activities they require.

Overhead Cost

General expenses related to the day-to-day operations of a business that cannot be directly linked to a specific product or service.