Table 4-6 -Refer to Table 4-6.The Equations Above Describe the Demand and Describe

question 207

Multiple Choice

Table 4-6

-Refer to Table 4-6.The equations above describe the demand and supply for Aunt Maud's Premium Hand Lotion.The equilibrium price and quantity for Aunt Maud's lotion are $20 and 30 thousand units.What is the value of economic surplus in this market?

• A)$600 thousand
• B)$1,050 thousand
• C)$1,500 thousand
• D)$2,100 thousand

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Definitions:

MRP

Materials Requirement Planning, a system for effectively managing manufacturing processes by calculating materials, components, and quantities needed.

Parent Component

A part or item in an assembly or sub-assembly that has one or more components underneath it in the hierarchy of materials.

Dependent Demand

The demand for a product or component that is directly reliant on the demand for another product or assembly within the same production process.

Customer Preferences

This term refers to the tastes, choices, or selections that consumers make regarding products, services, or suppliers.