The Demand for Shoes in a Country Is Given by D

question 132

Multiple Choice

The demand for shoes in a country is given by D = 60 - 0.5P,where P is the price of a pair of shoes.Supply by domestic producers is given by S = 20 + 0.5P.The world price of a pair of shoes equals $30 and this economy is open to trade.If a quota of 6 pair of shoes is placed on shoe imports,the quantity of shoes demanded domestically will change from ________ pairs with no quota to _________ pairs with the quota.

• A) 40;43
• B) 40;45
• C) 43;40
• D) 45;40
• E) 45;43

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Definitions:

Prime Costs

The direct costs directly attributable to the manufacture of goods, including direct materials and direct labor.

Conversion Costs

The combined costs of direct labor and manufacturing overheads incurred to convert materials into finished goods.

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including costs related to direct materials, direct labor, and manufacturing overhead.

Total Factory Overhead Cost

Total factory overhead cost includes all indirect costs associated with manufacturing, such as utilities, maintenance, and salaries of non-direct labor, that are not directly tied to the production of specific goods.