Assume a Market Is in Equilibrium

question 215

Multiple Choice

Assume a market is in equilibrium.There is an increase in supply,but no change in demand As a result the equilibrium price ________,and the equilibrium quantity ________.

• A) rises; increases
• B) rises; decreases
• C) rises; does not change
• D) falls; decreases
• E) falls; increases

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Definitions:

Automated Shaper

A machine that uses computer controls to cut and shape materials with precision, often used in manufacturing for consistent and efficient production.

Manufacturing Overhead

Costs associated with manufacturing a product that are not directly tied to the factory's operations.

Job-Order Costing

A cost accounting system that assigns manufacturing costs to an individual product or batches of products.

Predetermined Overhead Rate

A calculated rate used to charge manufacturing overhead costs to products, usually based on a fraction of planned or actual production volumes.