Because of a Sharp Increase in the Price of Petrol

question 56

Multiple Choice

Because of a sharp increase in the price of petrol, the demand for Sports Utility vehicles (SUVs) has decreased. So, the high price of petrol leads to a

• A) leftward shift of the supply curve of SUVs and no shift in the demand curve for SUVs.
• B) rightward shift of the supply curve of SUVs and no shift in the demand curve for SUVs.
• C) leftward shift of the demand curve for SUVs and the supply curve of SUVs.
• D) leftward shift of the demand curve for SUVs and no shift in the supply curve of SUVs.
• E) leftward shift of the demand curve for SUVs and a rightward shift of the supply curve of SUVs.

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Definitions:

Inventory Control

A control that ensures that inventory is only big enough to meet immediate needs.

Predetermined Point

A specific goal, outcome, or condition that is decided in advance before any action is taken.

Balanced Scorecards

A strategic planning and management system used by organizations to align business activities with the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals.

Financial Performance

An assessment of how well an organization uses its assets from its primary mode of business and generates revenues.