Acme Expected Demand for Rocket-Powered Roller Skates to Pick Up

question 46

Multiple Choice

Acme expected demand for rocket-powered roller skates to pick up during Roadrunner Season, so they built hundreds of extra pairs and stored them out of season. The excess production is:

• A) buffer stock.
• B) throughput.
• C) lagniappe.
• D) anticipation inventory.

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Definitions:

Supply

The total amount of a product or service that is available to consumers in the market.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, quantified as the percentage change in quantity demanded divided by the percentage change in price.

Demand

The amount of a product or service that buyers are ready and capable of buying at different price levels over a specific time frame.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of that good that suppliers are willing to produce and sell.