The Following Figure Shows the Demand Curve, D, and Supply

question 227

Multiple Choice

The following figure shows the demand curve, D, and supply curve, S, of ballpoint pens in Lithasia. The world price of pens is $2.

-Refer to the figure above.What is the domestic price of pens in Lithasia?

• A) $1
• B) $2
• C) $3
• D) $6

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Definitions:

Total Asset Turnover

A financial ratio that measures a company’s effectiveness in using its assets to generate sales revenue.

Inventory Turnover

A ratio that shows how many times a company's inventory is sold and replaced over a specified period, indicating the efficiency of inventory management.

Operating Cycle

The amount of time it takes for a business to purchase inventory, sell products, and receive cash in exchange for those products, reflecting the efficiency of a company's cash flow.

Accounts Receivable Turnover

A financial metric that assesses how efficiently a company collects on the credit it extends to customers by measuring how often receivables are collected during a period.