Suppose When the Price of Laptops Fall, College Students Buy

question 197

Multiple Choice

Suppose when the price of laptops fall, college students buy more laptops.This implies that

• A)there is a positive relationship between laptop prices and quantities purchased by college students.
• B)there is a negative relationship between laptop prices and quantities purchased by college students.
• C)there is a direct relationship between laptop prices and quantities purchased by college students.
• D)there is a one-to-one relationship between laptop prices and quantities purchased by college students.

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Definitions:

Standard Cost System

An accounting system that uses standard costs for product costs, facilitating budgeting and performance evaluation.

Direct Labour Hours

The total time workers spend producing a product or service, which directly correlates to the production.

Labour Efficiency Variance

A metric that assesses the difference between the expected amount of labor time to produce a given level of output and the actual labor time used.

Labour Rate Variance

The difference between the actual wage rate paid to workers and the expected (or standard) wage rate, multiplied by the actual hours worked.