By Itself, an Increase in the Number of Suppliers in a Market

question 392

Multiple Choice

By itself, an increase in the number of suppliers in a market results in a

• A) leftward shift in the supply curve.
• B) rightward shift in the supply curve.
• C) movement down along the supply curve.
• D) Both answers A and C are correct.

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Definitions:

Bullwhip Effect

A phenomenon where inaccuracies in demand forecasts cause fluctuations and inefficiencies in the supply chain.

Consistent Estimate

A statistical term referring to an estimator that, as the sample size grows, increasingly converges in probability to the parameter it estimates.

Lack Of Coordination

The absence or failure of integrated efforts and communications among departments, leading to inefficiencies and problems in workflow.

Supply Chain

The sequence of processes involved in the production and distribution of a commodity.