If a Market Reflects a Shortage and Prices Are Allowed

question 130

Multiple Choice

If a market reflects a shortage and prices are allowed to move:

• A) supply will increase.
• B) demand will decrease.
• C) price will decrease.
• D) price will increase.

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Definitions:

VMI

Vendor Managed Inventory, a business model in which the supplier of goods, rather than the retailer, is responsible for managing and replenishing inventory.

Walmart And P&G

Two major corporations, Walmart, a retail giant, and Procter & Gamble (P&G), a multinational consumer goods company, known for their strategic partnerships and business relations.

JIT

Just-In-Time, a manufacturing methodology aimed at reducing flow times within production as well as response times from suppliers and to customers.

Vertical Integration

A strategy where a company expands its business operations into different steps on the same production path, such as a manufacturer owning its supplier and/or distributor.