Question

need help w/ these please

17. Kara's Kittens typically produces and sells at its optimal (lowest per-unit cost) level of 30 scratching posts per week. Kara's also maintains an inventory of 20 scratching posts. If prices are sticky and there is a positive demand shock this week resulting in demand for 40 scratching posts, we would expect Kara's to: A. sell the additional scratching posts out of its inventory and rebuild the inventory later when a negative demand shock occurs. B. permanently expand production to 40 scratching posts per week. raise prices on scratching posts. introduce a new line of scratching posts.

Answer 1

17) Option A : sell the additional scratching posts out of its inventory and rebuild the inventory later when a negative demand shock occurs.

when the time time of a negative demand shock occurs, kera's will try to rebuild the inventory and sell their additional scratching posts out of its inventory.

11) Option D : Nigeria experiences a 2.7 percent increase in real GDP per person.

The real GDP per person describes the country which should be achieve modern economic growth or not. Real GDP per person is  measurement of the total economic output of a country divided by the number of people. Hence it describes whether a country achieves economic growth.

14) Option B : reduces the output in the short run.

when the time of recession or fear of recession will come,the expected output for the televisions in the short run will reduced.Also the demand for the product is decreases.

16) Option D : Firms can maintain production levels and adjust inventories in response to demand shocks.