In the Market for Personal Computers and in the Stock

question 3

Multiple Choice

In the market for personal computers and in the stock market:

• A)supply and demand shifts change prices and quantities.
• B)persistent shortages and surpluses rarely exist.
• C)in response to shifts in supply and demand, equilibrium is restored quickly.
• D)all of the above are true.

---

Definitions:

Production and Sales Process

The combined sequence of operations involved in manufacturing goods and selling them to customers.

Days Sales Outstanding (DSO)

A measure of the number of days that it takes to collect on accounts receivable.

Accounts Receivable

Money owed to the company for goods or services provided and billed to a customer.

Accounts Payable

Money owed by a business to its suppliers.