Figure 2-15 Information from the Records of Chrome Ponies Enterprises for June

question 59

Multiple Choice

Figure 2-15
Information from the records of Chrome Ponies Enterprises for June 2016 is as follows:
Inventories

-Refer to Figure 2-15. What is the gross margin (profit) ?

• A) $11,500
• B) $11,600
• C) $4,500
• D) $4,600

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Definitions:

Demand Curve

A graphical representation demonstrating the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.

Short Run

A period in economic analysis where some factors of production are fixed and cannot be changed.

Market Demand

The aggregate amount of a product or service that every consumer in a market is prepared and capable of buying at different price levels.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to make adjustments and the market to stabilize at a point where supply equals demand.