If the Demand and Supply Functions for Z-Brand Phones Are

question 222

Multiple Choice

If the demand and supply functions for Z-brand phones are and respectively, compare the quantity demanded and the quantity supplied when p = 46. Note that q is the quantity produced or sold. Are there surplus phones or not enough to meet demand? ​​

• A) There will be a surplus at a price of $46.
• B) There will be a shortage at a price of $46.

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Definitions:

Standard Quantity

The predetermined amount of materials or resources expected to be used in a production process or manufacturing of a product.

Standard Price

A predetermined cost that is set for materials, labor, and overhead to evaluate financial performance against actual costs.

Actual Materials Purchased

The actual quantity of materials bought by a company for production purposes over a given period.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard variable overhead for the actual production level, reflecting efficiency in controlling variable overhead costs.