Once an Equilibrium Is Achieved,it Can Persist Indefinitely Because

question 147

Multiple Choice

Once an equilibrium is achieved,it can persist indefinitely because

• A) shocks that shift the demand curve or the supply curve cannot occur.
• B) shocks to the demand curve are always exactly offset by shocks to the supply curve.
• C) the government never intervenes in markets at equilibrium.
• D) in the absence of supply/demand shocks no one applies pressure to change the price.

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Definitions:

Periodic Review Policy

A method of inventory control where stock levels are checked at fixed intervals and orders are placed accordingly.

CSL (Cycle Service Level)

An inventory management metric that measures the probability that the inventory level will not stock out within one replenishment cycle, typically expressed as a percentage.

Normally Distributed

Normally distributed refers to a statistical distribution where data is symmetrically distributed around the mean, forming a bell-shaped curve commonly seen in many natural and social phenomena.

Product Availability

The extent to which goods are in stock and readily accessible for purchase by consumers.