Which of the Following Is NOT True About the Equilibrium

question 315

Multiple Choice

Which of the following is NOT true about the equilibrium price?

• A) The price where a change in quantity supplied occurs.
• B) The price where the demand curve intersects the supply curve.
• C) The price where quantity demanded equals quantity supplied.
• D) The price where there is neither excess quantity demanded or excess quantity supplied.

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Definitions:

Indirect Materials

Materials used in the production process but not directly traceable to a finished product, such as lubricants for machinery.

Spending Variance

The difference between the budgeted or planned amount of expense and the actual amount spent.

Standard Costing System

A cost accounting system that assigns expected costs to products to help managers monitor and control actual costs.

Direct Materials

Raw materials that can be directly traced to the production of a specific product.