Use the Information Below to Answer the Following Questions -Refer to the Table Above

question 56

Multiple Choice

Use the information below to answer the following questions.
Scott's Fencing constructs paling fences. During last month, the fencing division erected 4,000 metres of fencing. The costs incurred by the division were as follows: $$\begin{array} { l r } \text { Palings } & \$ 4,000 \\\text { Posts } & \$ 5,000 \\\text { Nails (no usage records) } & \$ 500 \\\text { Cement (no usage records) } & \$ 500 \\\text { Wear and tear on equip. } & \$ 2,000\end{array}$$
-Refer to the table above. The full cost associated with constructing the 4,000 metres of fencing is:

• A)$12,000.
• B)$9,500.
• C)$9,000.
• D)$10,000.

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Definitions:

Demand

Demand in economics is defined as consumers' willingness and ability to purchase goods or services at a given price over a specific period of time.

Normal Goods

Goods for which demand increases as consumer income rises, and decreases when consumer income falls.

Inferior Goods

Goods for which demand decreases as the income of consumers increases, opposite to normal goods.

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing and able to purchase at a given price level in a given period.