The Following Equations Represent the Demand and Supply for Silver

question 32

Multiple Choice

The following equations represent the demand and supply for silver pendants. QD = 50 - 2P
QS = -10 + 2P
What is the equilibrium price (P) and quantity (Q - in thousands) of pendants?

• A)P = $15;Q = 20 thousand
• B)P = $50;Q = 10 thousand
• C)P = $20;Q = 15 thousand
• D)P = $10;Q = 30 thousand

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Definitions:

Inventory

Items kept on hand by a company for the purpose of production or sale, encompassing raw materials, work-in-progress, and finished goods.

Moving-average Cost Method

An inventory valuation method that averages the costs of inventory over a period to calculate the cost of goods sold and ending inventory valuation.

Average-cost Method

The average-cost method is an inventory costing method that assigns an average cost to each item in inventory, used to determine the cost of goods sold and ending inventory values.

Weighted-average Cost Method

This inventory costing method assigns a weighted average cost to each unit in inventory, used to calculate cost of goods sold and ending inventory.