Answer:
Average daily demand (d) = 15
Lead time (L) = 3 days
Value of Z = 2
Standard deviation of demand during lead time = 5
Reorder point = d × L + (Z × standard deviation of demand during lead time)
= 15 × 3 + (2 × 5)
= 45 + 10
= 55
Answer:
A. The demand of wheat and corn is basically inelastic and so increases in output drastically reduce price and income to the farmers.
Explanation:
Inelastic demand means the change in price does not affect the purchasers' buying power. The difference in price has relatively little effect on the quantity demanded. Since the demand for wheat is inelastic, price and income will reduce irrespective of increasing production. Therefore, harvesting massive production (wheat or corn) does not bring a high income.
Answer:
Explanation:
"I spend more on orange juice even as the price rises".
This implies that orange juice is not an inferior good because people demand less of an inferior product when their prices fall. In this case more is demanded as price rises implying that orange juice is being viewed as a luxury good or healthy drink. Consumers tend to interpret certain price increase positively and view the goods as superior.
Does this mean that I must be violating the law of demand?
YES
Generally, the law of demand states that, "citeris paribus (with all things being equal), as the price of a good rises, quantity demanded falls; conversely, as the price of a good falls, quantity demanded increases".
Therefore if "I spend more on orange juice even as the price rises", then obviously the law of demand is being violated
Chart, because a chart has coloumns, and at the top it labels clearly the contents of the coloumn
