Which of the Following Statements Is True of the Relationship

question 29

Multiple Choice

Which of the following statements is true of the relationship between a commodity's supply and demand?

• A) If the supply of a commodity decreases,the price of the commodity decreases.
• B) Strong demand of a commodity will lead to price drops.
• C) Oversupply of a commodity will result in price drops.
• D) If the demand for a commodity decreases,the price of the commodity increases.

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Definitions:

Cash Discount

A reduction in the invoice price offered by sellers to buyers as an incentive for early payment before the established due date.

Prompt Payment

The practice of paying invoices on time, which can help build good relationships with suppliers and might qualify the payer for discounts.

Lower Price

The reduction of cost or charge for a product or service, making it more affordable.

Performance Bond

A bond issued by a bank or insurance company that guarantees satisfactory completion of a project by a contractor, mitigating risk for the project owner.