The Figure Above Shows the Demand Curve for Pizza and the Market

question 222

Multiple Choice

The figure above shows the demand curve for pizza and the market price of pizza.
-In the figure above,how much is the consumer who buys the 5,000th pizza willing to pay for that pizza?

• A) $15
• B) $10
• C) $12
• D) $22.50
• E) $5

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Definitions:

Periodic Inventory System

A method of inventory valuation where inventory counts and cost of goods sold calculations are made periodically at the end of a reporting period, instead of after each sale.

Cost Flow Assumptions

Accounting principles that dictate how the cost of goods sold and ending inventory values are calculated, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).

LIFO

"Last In, First Out" - an inventory valuation method where the most recently produced or purchased items are recorded as sold first.

FIFO

"First-In, First-Out," an inventory valuation method where goods first purchased or produced are the first to be sold or used.