Suppose That People Expect the Price of Bluetooth Speakers to Rise

question 79

Multiple Choice

Suppose that people expect the price of Bluetooth speakers to rise next year.As a result of this expectation,people will MOST likely:

• A)purchase fewer Bluetooth speakers this year.
• B)observe higher prices for Bluetooth speakers this year.
• C)purchase the same amount of Bluetooth speakers since this expectation will have no effect on consumers this year.
• D)decide to wait and purchase the Bluetooth speakers next year.

---

Definitions:

Direct Labor-Hours

The sum of hours contributed by personnel directly employed in the process of manufacturing.

Variable Overhead

Costs that fluctuate with the level of production activity, such as utilities or raw materials.

Direct Material

Basic substances that are directly used and can be readily identified in the final product.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process or production of goods.