Refer to the Graphs Above

question 101

Multiple Choice

Refer to the graphs above. Suppose a firm is currently producing 500 computers per week and charging a price of $1000. What happens to the firm's inventory of computers if there is a negative demand shock and prices are inflexible?

• A) The firm's inventories will not change
• B) The firm's inventories will increase by 200 computers per week
• C) The firm's inventories will decrease by 150 computers per week
• D) The firm's inventories will increase by 350 computers per week

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Definitions:

Global South

A term used to describe countries considered to be less economically developed and often located in the southern hemisphere, highlighting economic and social disparities.

Conflict Theories

A framework in sociology and social psychology that emphasizes the social, political, or material inequality of a social group, critiquing the broad socio-political system.

Functionalist Theories

A theoretical perspective in sociology that views society as a complex system whose parts work together to promote solidarity and stability, focusing on the societal functions that each part performs.

Global Poverty Debate

A discourse involving differing viewpoints and arguments about the causes, impacts, and solutions to poverty worldwide.