The Demand Function for Schrecklichs Is 200 - 4P_S -

question 9

Multiple Choice

the demand function for Schrecklichs is 200 - 4P_S - 2P_L and the demand function for LaMerdes is 200 - 3P_L - P_S, where P_S and P_L are respectively the price of Schrecklichs and LaMerdes.If the world supply of Schrecklichs is 140 and the world supply of LaMerdes is 120, then the equilibrium price of Schrecklichs is

• A)$2.
• B)$28.
• C)$26.
• D)$15.
• E)$4.

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Definitions:

Customer Service Level

A measure of the quality of service provided to customers, often reflecting the ability to meet customer needs and resolve issues.

Stockout

A situation that occurs when an item is not in stock and unavailable for sale or use, often leading to lost sales or customer dissatisfaction.

Lost Sale

A potential sale that is not realized, often due to stockouts or inability to meet customer demand.

Salvage Value

The estimated resale value of an asset at the end of its useful life, often considered for depreciation calculations.