Refer to the Figure

question 46

Multiple Choice

Refer to the figure.Which of the following is true?

• A) At a price of $10, there would be neither excess demand for nor excess supply of pizza.
• B) At a price of $8, there would be excess demand for pizza.
• C) At a price of $5, there would be neither excess demand for nor excess supply of pizza.
• D) At a price of $0.50, there would be excess supply of pizza.

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Definitions:

Price Variance

The difference between the actual cost of a good or service and its planned or budgeted cost.

Material A

Material A most likely refers to a specific type of raw material used in production processes, identifiable by a unique characteristic or designation.

Materials Price Variance

The variance between the standard cost and the actual expense of materials, calculated by multiplying the actual volume of materials utilized.

Total Labor Variance

A metric that measures the difference between the actual cost of labor and the standard or budgeted cost.