Refer to the Above Table

question 70

Multiple Choice

Refer to the above table.Suppose that demand is represented by columns (3) and (2) and supply is represented by columns (3) and (5) .If the price were artificially set at $9:

• A) the market would clear.
• B) a surplus of 20 units would occur.
• C) a shortage of 20 units would occur.
• D) demand would change from columns (3)and (2)to columns (3)and (1).

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Definitions:

Inventory Ownership

Refers to having legal title to goods and merchandise stored within a firm's warehouse or storage facility.

Weighted Average

It's a calculation that takes into account the varying degrees of importance of the numbers in a data set, often used in determining the cost of inventory.

Erratic Changes

Unpredictable fluctuations that do not follow a set pattern or trend, often affecting financial markets or economic conditions.

Inventory Cost Method

An accounting technique used to determine the value of a business's inventory and cost of goods sold, such as FIFO (First In, First Out) or LIFO (Last In, First Out) methods.