Table 108
a Manager Wants to Forecast the Monthly Demand
for

question 151

Multiple Choice

Table 10.8
A manager wants to forecast the monthly demand
for a machine the company produces.
$$\begin{array} { | c | c | } \hline \text { Month } & \begin{array} { c } \text { No. Machines } \\\text { Sold }\end{array} \\\hline 1 & 50 \\2 & 65 \\3 & 52 \\4 & 56 \\5 & 55 \\6 & 60 \\\hline\end{array}$$
-Use the information in Table 10.8.Forecast the demand for the machine for month 7,using the three-month moving average method.

• A) less than or equal to 56
• B) greater than 56 but less than or equal to 58
• C) greater than 58 but less than or equal to 61
• D) greater than 61

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Definitions:

Relative Price

The price of one good or service compared to the price of another, essentially showing the trade-off between the two items.

Menu Costs

Menu costs refer to the expenses incurred by firms in changing prices in response to market changes, including the physical costs of changing price tags and the costs of updating marketing materials.

High Inflation

A condition where the general price level in an economy increases rapidly over a period, eroding purchasing power.

Velocity

Velocity in economics refers to the speed at which money circulates within the economy, indicating how frequently units of currency are used to purchase domestically produced goods and services.