If a Market Is in Equilibrium and Then Demand Increases

question 146

Multiple Choice

If a market is in equilibrium and then demand increases while supply decreases,the change in the equilibrium price is ________ and the change in the equilibrium quantity is _________.

• A) positive;positive
• B) positive;negative
• C) positive;indeterminate
• D) indeterminate;positive
• E) negative;negative

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Definitions:

Fixed Manufacturing Overhead Budget Variance

The discrepancy between the budgeted fixed overhead costs and the actual fixed overhead incurred during production.

Fixed Manufacturing Overhead Volume Variance

The difference between the budgeted and actually applied fixed manufacturing overhead, based on standard costs for a given period.

Fixed Overhead Budget Variance

The difference between actual fixed overhead costs and the budgeted or expected fixed overhead costs.

Volume Variance

A measure of the difference between the budgeted and actual volume of production, impacting costs.