Suppose Demand for a Good Is Q_D= 100 - P

question 2

Multiple Choice

Suppose demand for a good is Q_D= 100 - P and supply is Q_S = -20 + P.What is the equilibrium quantity?

• A)20
• B)40
• C)60
• D)80

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Definitions:

Cost Driver

A factor that influences or contributes to the expense of certain business operations.

Direct Costs

Costs that can be directly attributed to the production of a specific good or service, such as raw materials and direct labor.

Allocation Base

A measure or statistic used to distribute indirect costs to different cost objects, such as departments or products.

Overhead Costs

Expenses related to the day-to-day running of a business that cannot be directly attributed to creating a product or service, such as rent, utilities, and insurance.