It Is Expected That the Price of a Tonne of Wheat

question 23

Multiple Choice

It is expected that the price of a tonne of wheat will increase in one month. This belief will result in

• A) an increase in the current supply of wheat.
• B) no change in the current or future supply of wheat.
• C) an increase in the current quantity supplied of wheat.
• D) a decrease in the future supply of wheat.
• E) a decrease in the current supply of wheat.

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Definitions:

Working Stock

Working stock refers to the inventory that is readily available for use or sale, excluding any safety stock kept in reserve to cover potential shortages.

Collection Period

The average number of days it takes for a company to collect payments owed by its customers.

Bad Debts

Money owed to a company that is unlikely to be paid by the debtor, often resulting in a write-off for the company.

Just-In-Time

An inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.