How Will the Demand and Supply of a Product Be

question 43

Multiple Choice

How will the demand and supply of a product be affected if both producers and consumers expect the future price of a product will be higher than at present?

• A)It will cause an increase in demand but a decrease in supply.
• B)It will cause an increase in both the demand and supply.
• C)It will cause a decrease in both the demand and supply.
• D)It will cause an increase in supply but will have no effect on demand.
• E)It will cause an increase in supply but a decrease in demand.

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Definitions:

Transportation Rate

The cost associated with moving goods or individuals from one location to another, often determined by distance, mode of transport, and cargo size.

Grid Technique

A strategic planning tool used to evaluate and map a company's position based on two dimensions, such as market growth vs. market share.

Facility Location

The process of determining the best geographical location for a company's operations, considering factors like cost, accessibility, and proximity to market.

Logistics Channel Function

The activities involved in moving products from the producer to the consumer, including transportation, warehousing, and inventory management.