Suppose the Domestic Supply (Q^S) and Demand (Q^D)for MP3 Players $$\begin{array} { l } Q ^ { S } = - 25 + 10 P \\Q ^ { D } = 875 - 5 P\end{array}$$

question 50

Multiple Choice

Suppose the domestic supply (Q^S) and demand (Q^D) for MP3 players in the United States are given by the following set of equations: $$\begin{array} { l } Q ^ { S } = - 25 + 10 P \\Q ^ { D } = 875 - 5 P\end{array}$$ In the absence of trade with the rest of the world, the consumer surplus in the United States' MP3 player market is _____.

• A)$22,562.50
• B)$30,062.50
• C)$33,062.50
• D)$19,500.00

---

Definitions:

Material Cost

The expense associated with raw materials and components needed for producing a product.

Average Flow Time

The average time that units spend in a production system, from arrival to departure, indicating the efficiency of the process.

Cycle Inventory

Inventory that is held to facilitate the smooth operation of a production cycle, compensating for lead times and production schedules.

Inventory Profile

A detailed outline or analysis of the types, amounts, and locations of inventory a company holds at any given time.