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Refer to the Graphs

Question 164

Multiple Choice

  Refer to the graphs. Suppose a firm is currently producing 500 computers per week and charging a price of $1,000. What happens to the firm's inventory of computers if there is a negative demand Shock and prices are flexible? A)  The firm's inventories will not change. B)  The firm's inventories will increase by 200 computers per week. C)  The firm's inventories will decrease by 150 computers per week. D)  The firm's inventories will increase by 350 computers per week. Refer to the graphs. Suppose a firm is currently producing 500 computers per week and charging a price of $1,000. What happens to the firm's inventory of computers if there is a negative demand
Shock and prices are flexible?


A) The firm's inventories will not change.
B) The firm's inventories will increase by 200 computers per week.
C) The firm's inventories will decrease by 150 computers per week.
D) The firm's inventories will increase by 350 computers per week.

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