Demand for a Product Is Likely to Be More Price

question 175

Multiple Choice

Demand for a product is likely to be more price elastic if:

• A)it has few substitutes.
• B)its price is low relative to a product with which it must be used.
• C)it is considered a necessity.
• D)it has many substitutes.

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Definitions:

Lean Manufacturing

An organized approach to reducing waste in a production system without compromising efficiency.

Make to Stock

A production strategy where products are manufactured in anticipation of demand, based on forecasts, and stored in inventory.

Pull Manufacturing

A production strategy where work is only initiated as per demand, aiming to reduce inventory levels and increase efficiency.

Make to Order

is a manufacturing process in which production starts only after a customer's order is received.