When supply and demand for a product increase simultaneously, it means that
1 answer:
Answer:
b. cannot predict equilibrium price but know that equilibrium quantity will increase.
Explanation:
The options to this question wasn't provided. Here are the options:
a. cannot predict the change in either the equilibrium quantity or equilibrium price.
b. cannot predict equilibrium price but know that equilibrium quantity will increase.
c. predict, that both equilibrium price and quantity will increase.
d. predict, that both equilibrium price and quantity will decrease.
When demand increases, the demand curve shifts to the right. Quanitity demanded increases and price increases.
While when supply increases, the quantity supplied increases and price falls.
The combined effect would be an increase in equilibrium quanitity and an indeterminate effect on price.
Please check the attached image for a graphical illustration.
I hope my answer helps you
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Answer: $24,000
Explanation:
Operating income under absorption costing:
= Sales - Cost of goods sold - Selling and admin expenses
Cost of goods sold = Variable production cost + Fixed production cost
= (61 * 1,000 units sold) + (32,000 / 1,500 units produced * 1,000 units sold)
= $82,333
Selling and admin expenses:
= Variable + Fixed
= (6 * 1,000) + 8,000
= $14,000
Operating income = (120 * 1,000) - 82,333 - 14,000
= $23,667
= $24,000
