Well the quantity theory is "The hypothesis that changes in prices correspond to changes in the monetary supply" so when inflation happens the price will increase but when that happens the purchases and the value of money will decrease so will its demand. That's the speculation that the prices will not correspond to the monetary supply
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Answer:
$6,500
Explanation:
For computing the estimated fixed cost, we have to determine the variable cost per hour which is shown below:
Variable cost per hour = (High power cost - low power cost) ÷ (High machine hours - low machine hours)
= ($20,000 - $11,000) ÷ (12,000 hours - 4,000 hours)
= $9,000 ÷ 8,000 hours
= $1.125
Now the fixed cost equal to
= High power cost - (High machine hours × Variable cost per hour)
= $20,000 - (12,000 hours × $1.125)
= $20,000 - $13,500
= $6,500
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