What Combination of Changes in Supply and Demand Would Most

question 12

Multiple Choice

What combination of changes in supply and demand would most likely increase the equilibrium price?

• A)when supply increases and demand decreases
• B)when supply decreases and demand increases
• C)when supply decreases and demand decreases
• D)when supply increases and demand increases

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Definitions:

Service Level

A measure of the quality of service provided, often expressed as a percentage, indicating how well a service meets customer expectations or agreed-upon standards.

Lead Time

The total time taken from the initiation of a process or order to its completion.

Carrying Costs

Expenses associated with holding or storing inventory over time, including insurance, storage, depreciation, and obsolescence.

EOQ Model

Stands for "Economic Order Quantity Model," a formula that calculates the optimal order quantity to minimize the costs of holding inventory and placing orders.