PRC-3 · Chapter 10 · Question 41 of 70
What specific terminology defines the total amount of a commodity physically in existence in a warehouse, as opposed to the amount actually offered for sale at a specific price?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Stock
Explanation
Stock refers to the total physical quantity of a commodity available. Supply is only the portion of that stock a seller is willing to offer at a specific market price.
More Demand, Supply and Market Equilibrium MCQs
- Q43The demand for bricks, cement, and construction cranes only exists because there is a high demand for building new houses. This type of…
- Q44To prevent wild price fluctuations in agriculture, a government establishes a 'Buffer Stock'. What action must the government take if…
- Q45A massive improvement in robotic assembly lines drastically cuts the production cost of televisions. What is the immediate graphical…
- Q46Which of the following events would cause a 'movement along' the demand curve for shoes, rather than a 'shift' of the entire demand curve?
- Q47An exclusive diamond-encrusted watch actually sees an increase in sales when its manufacturer raises the price, because the ultra-wealthy…