Westerlund Owns a Picture-Framing Shop,The Caplow Co

question 3

Multiple Choice

Westerlund owns a picture-framing shop,The Caplow Co.The average price she receives for a picture she frames for a customer is $120.This price must cover her costs for a typical framed picture,which consists of $5 for glass,$2 for matting,$13 for the frame,and $30 for the labor involved.She must also cover monthly expenses of $1,000 for rent and insurance,$200 for heat and electricity,$500 for advertising,and $3,500 for her salary.Assuming there is no change in price or the quantity demanded,if Westerlund wants to increase her advertising expenses to a total of $1,000 (a $500 increase) ,this would cause total costs to __________ and the break-even quantity to __________.

• A) decrease; stay the same
• B) increase; increase
• C) decrease; increase
• D) stay the same; increase
• E) stay the same; decrease

---

Definitions:

Third Ventricle

A narrow fluid-filled space in the brain, part of the ventricular system that lies between the two halves of the thalamus.

Fourth Ventricle

A structure in the brain that lies within the hindbrain and is responsible for circulating cerebrospinal fluid.

Electroencephalogram

A test that records electrical activity in the brain, used to diagnose and monitor neurological conditions.

Graphic Recording

Graphic recording refers to the real-time process of capturing people's ideas, conversations, and meeting outcomes through text and images on a large visual display.