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A Producer of Automobile Batteries Notes That the Price of Batteries

question 41

Short Answer

A producer of automobile batteries notes that the price of batteries has risen over each of the past three years. The firm decides to expand its battery production. This illustrates
the law of supply.
the law of market price.
the law of equilibrium.
the law of demand.
the law of supply and demand.


Definitions:

Safety Inventory

Extra stock kept in storage to guard against uncertainty in demand or supply, ensuring that a company can meet customer orders without delays.

Forecasted Demand

An estimation of the quantity of a product or service that consumers will purchase in the future.

Forecasting Errors

The difference between actual outcomes and previously predicted values, typically observed in the context of demand forecasting or financial forecasts.

Safety Inventory

Extra inventory held to guard against uncertainties in demand or supply, ensuring product availability.

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