Table 3-B -Refer to Table 3-B

question 119

Multiple Choice

Table 3-B
$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { PRICE per laree pepperani } \\\text { pizza }\end{array} & \begin{array} { c } \text { QUANTITY DEMANDED } \\\text { of large pepperoni pizzas }\end{array} & \begin{array} { c } \text { QUANTITY sUPPLIED } \\\text { large pepperoni pizzas }\end{array} \\\hline \$ 10 & 1,000 \text { urits } & 5,500 \text { urits } \\\hline 9 & 2,000 \text { urits } & 5,000 \text { urits } \\\hline 8 & 3,000 \text { urits } & 4,500 \text { urits } \\\hline 7 & 4,000 \text { urits } & 4,000 \text { urits } \\\hline 6 & 5,000 \text { urits } & 3,500 \text { urits } \\\hline 5 & \text { 6,000 urits } & 3,000 \text { urits } \\\hline 4 & 7,000 \text { urits } & 2,500 \text { urits } \\\hline 3 & \text { 8,000 urits } & 2,000 \text { urits } \\\hline 2 & 9,000 \text { urits } & 1,500 \text { urits } \\\hline 1 & 10,000 \text { urits } & 1,000 \text { urits } \\\hline\end{array}$$
-Refer to Table 3-B.What is the equilibrium price in the example?

• A)$9
• B)$8
• C)$7
• D)$6
• E)$5

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, offering insight into its financial health.

EOQ Approach

Economic Order Quantity, a formula used to determine the optimal order size that minimizes the total inventory costs including ordering and holding expenses.

Fixed Interval Model

An inventory replenishment approach where orders are placed at fixed intervals, regardless of demand levels, to simplify ordering processes.