Use the Following to Answer Questions

question 154

Multiple Choice

Use the following to answer questions:
Figure: Demand and Supply of Gasoline
-(Figure: Demand and Supply of Gasoline) Look at the figure Demand and Supply of Gasoline. The initial equilibrium price and quantity (at intersection of S₁ and D) of gasoline are:

• A) $2.00 and 450 gallons.
• B) $1.50 and 400 gallons.
• C) $2.00 and 200 gallons.
• D) $2.50 and 300 gallons.

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Definitions:

Credit Sales

Sales made by a business that do not require immediate payment, allowing the buyer to pay at a later date.

Total Sales

The sum of all sales (or revenue) generated by a business during a specific period, before any deductions.

Cash Received

The money that a business or individual receives during a specific period, including revenues from sales, services, loans, or investments.

Safety Stock

Extra inventory kept on hand to prevent stockouts due to unpredictable demand or delays in supply.