The Country Described in the Table Below Produces and Consumes

question 200

Multiple Choice

The country described in the table below produces and consumes only three goods: energy drinks, pizza, and t-shirts. The quantity produced and price of each good in 2016 and 2017 are provided.

-Refer to the above table.Assuming that 2016 is the base year,by what percentage did prices change between 2016 and 2017?

• A) Prices rose by 11 percent.
• B) Prices rose by 15 percent.
• C) Prices fell by 5 percent.
• D) Prices fell by 9 percent.

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Definitions:

Cheque

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or a named party.

Safety Stock

Extra inventory maintained to guard against stockouts due to variance in supply or demand.

Inventory Level

The quantity of goods and materials on hand and available for sale or use by a business at any given time.

Inventory Carrying Costs

Inventory carrying costs refer to the total expenses associated with holding and storing unsold goods, including warehousing, insurance, depreciation, and opportunity costs.