The MPS Calls for 110 Units of Product A

question 19

Essay

The MPS calls for 110 units of Product A. There are currently 60 of Product A on hand. Each A requires 2 of Part B. There are 30 units of B available.
a. Calculate the net requirements for A.
b. Calculate the gross requirements for B.
c. Calculate the net requirements for B.

---

Definitions:

Market Equilibrium Price

The price at which the quantity of goods buyers are willing to purchase equals the quantity sellers are willing to sell.

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a given price over a specified period.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price in a given time period.

Surplus

A situation in which the quantity of a good or service supplied exceeds the quantity demanded, often leading to a price reduction.