If Demand Decreases While Supply Simultaneously Decreases, Equilibrium Price __________

question 79

Short Answer

If demand decreases while supply simultaneously decreases, equilibrium price __________ (rises, falls, may either rise or fall) and equilibrium quantity ________________(rises, falls, may either rise or fall).

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Definitions:

Continuous Review Policies

Inventory management strategies that monitor inventory levels continuously to decide when to reorder.

Safety Inventory

Additional stock kept in reserve to protect against variability in demand or supply chain disruptions.

Review Interval

The scheduled time between evaluations or assessments of a particular process, inventory level, or system performance.

Decentralized Locations

A distribution strategy where operations or facilities are spread out across various geographical locations instead of being centralized in one spot.