The First Step in the Purchasing Process Is Which of the Following

question 41

Multiple Choice

The first step in the purchasing process is which of the following?

• A) Investigate suppliers
• B) Select suppliers
• C) Place an order
• D) Recognize the need

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market equilibrium price.

Consumer Surplus

The contrast between the aggregate amount buyers are willing to shell out for a good or service and the total they actually do.

Total Surplus

The combined benefit that both consumers and producers receive from a transaction, comprising consumer and producer surplus.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service (indicated by the demand curve) and the total amount that they actually do pay (i.e., the market price).