If the Demand for Bicycles Increases

question 89

Multiple Choice

If the demand for bicycles increases,

• A)the quantity demanded decreases
• B)equilibrium price increases and equilibrium quantity decreases
• C)equilibrium price decreases and equilibrium quantity increases
• D)quantity supplied increases
• E)quantity supplied decreases

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Definitions:

Direct Labor

The wages or salaries paid to workers who are directly involved in the production of goods or services.

Utilities

Services such as electricity, gas, water, and sewage treatment that are provided to consumers and businesses.

Fixed Costs

Fixed costs are expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Profit Centers

Divisions or units within a business that are directly responsible for generating profits.