If the Average Aggregate Inventory Value Is $45,000 and the Cost

question 11

Multiple Choice

If the average aggregate inventory value is $45,000 and the cost of goods sold is $10,000, which of the following is weeks of supply?

• A) 45,000
• B) 234
• C) 120
• D) 23.4
• E) 4.5

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Definitions:

Perfectly Inelastic

A situation in demand where the quantity demanded does not change in response to a change in price; represented graphically as a completely vertical demand curve.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers at various prices.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.

Perfectly Inelastic Demand

A situation in which the demand for a product does not change as the price changes.