-Refer to the Above Graph to Answer This Question

question 130

Multiple Choice

-Refer to the above graph to answer this question.What will be the result if the producer prices this product at $7,000.

• A)She will sell 80 units.
• B)She will sell 140 units.
• C)There will be a surplus of 80 units.
• D)There will be a shortage of 80 units.
• E)It would be underpriced.

---

Definitions:

Decreasing Costs

A situation where the total cost of production goes down as the volume of production increases.

LIFO Method

The LIFO (Last In, First Out) method is an inventory valuation technique where the latest items added to inventory are the first to be sold or used.

Net Income

The remaining earnings of a business after deducting all costs and taxes from its total income.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting the cost of goods sold.