Which of the Organizations Listed Below Has the Lowest Inventory

question 41

Multiple Choice

Which of the organizations listed below has the lowest inventory carrying cost?

• A)real estate agencies
• B)automobile repair
• C)restaurant
• D)financial services (insurance)

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Definitions:

Price

The sum of currency anticipated, required, or given in transaction for something.

Demand

The desire and ability of consumers to purchase goods and services at various prices.

Law of Demand

States that, all other factors being equal, as the price of a good increases, demand for that good decreases, and vice versa.

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a specific price.