In the Market Shown in the Graph, the Equilibrium Price

question 83

Multiple Choice

In the market shown in the graph, the equilibrium price is ___ and the equilibrium quantity is _____.

• A) $5; 30
• B) $10; 20
• C) $20; 10
• D) $15; 30

---

Definitions:

Cycle Inventory

Cycle inventory refers to the portion of inventory that is consumed and replenished in regular cycles in a supply chain, correlating with order frequency.

Annual Inventory

encompasses the total quantity or value of inventory that a company holds over a year, reflecting both the turnover rate and the efficiency of inventory management.

Distribution Inventory

Stocks of goods and materials held at various points in a supply chain, intended for downstream distribution.

Physical Inventory

The process of counting and verifying all physical goods and materials in stock by a business.