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Anastaziya [24]
3 years ago
13

One of the reasons why the AD curve slopes downward is that as theA. Price level rises, purchasing power rises.B. Price level fa

lls, purchasing power rises.C. Nation's income level rises, purchasing power rises.D. Nation's income level rises, purchasing power falls.E. This is a trick question, because the curve is upward sloping.
Business
1 answer:
8090 [49]3 years ago
4 0

Answer: Option (B) is correct.

Explanation:

If the price of a commodity decreases, as a result purchasing power of a consumer increases. This is one of the reasons why the AD curve slopes downward.

Suppose there is a fall in the price of a commodity, this will increase the demand for that commodity as well as the purchasing power of the consumer.

Because with a lower price of the commodity, individuals can buy more quantity of goods with the same level of income.

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Answer:

Instructions are listed below.

Explanation:

Giving the following information:

flexible budget:

direct materials of $3 per unit

direct labor of $2.50 per unit

manufacturing overhead of $1.25 per unit

Fixed costs are $49,000.

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Total manufacturing costs= $222,750

Fixed costs= 49,000

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Total manufacturing costs= $236,250

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