As a Falling Price Eliminates a Surplus in the Jersey

question 65

Multiple Choice

As a falling price eliminates a surplus in the jersey market,

• A)producers increase the quantity of jerseys they supply.
• B)producers decrease the quantity of jerseys they supply and buyers decrease the quantity of jerseys they demand.
• C)the demand curve for jerseys shifts rightward and the supply curve of jerseys shifts leftward.
• D)the demand curve for jerseys shifts leftward and the supply curve of jerseys shifts rightward.
• E)consumers increase the quantity of jerseys they demand.

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Definitions:

Average Inventory

An accounting metric that estimates the value or the number of a particular good that a company has in stock over a specific period.

Return on Common Shareholders' Equity Ratio

A financial metric that measures a company's profitability by showing how much profit it generates with the money shareholders have invested, specifically focusing on common stockholders.

Profit Margin

A financial metric that measures the amount of profit a company earns per dollar of revenue, indicating the efficiency of the company in converting sales into profits.

Inventory Turnover Ratio

A measure of how often a company sells and replaces its inventory over a period, indicating the efficiency of inventory management.