Assume That Supply Increases Slightly and Demand Increases Greatly

question 46

Multiple Choice

Assume that supply increases slightly and demand increases greatly.Which of the following will happen?

• A)equilibrium price will fall and equilibrium quantity will rise
• B)equilibrium price will rise and equilibrium quantity will fall
• C)equilibrium price will rise and equilibrium quantity will rise
• D)equilibrium price will fall and equilibrium quantity will fall
• E)neither equilibrium price nor equilibrium quantity will change

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Definitions:

Process Costing System

An accounting method used to apply costs to similar products or services that are mass-produced in a continuous fashion.

Job Costing System

A method of assigning production costs to individual units or projects, tracking expenses by job.

Production Departments

Specific areas within a manufacturing facility where various stages of the production process are carried out.

Production Costs

The total expenses incurred in the process of producing goods or services, including direct materials, direct labor, and overhead.