The Price of Good B Increases by 4 Percent, Causing

question 271

Multiple Choice

The price of Good B increases by 4 percent, causing the quantity demanded of Good A to decrease by 6 percent. The cross-price elasticity of demand is ________, and the goods are ________.

• A) 1.5; substitutes
• B) -1.5; complements
• C) 0.67; complements
• D) -0.67; substitutes

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Definitions:

Kanban

A scheduling system for lean manufacturing and just-in-time manufacturing (JIT), signaling the need to move materials within a production facility or to the facility from the external supplier.

MRP

Material Requirements Planning, a software-based production planning and inventory control system used to manage manufacturing processes.

Short-Term Scheduling

The process of assigning and managing tasks or resources over a short period of time, typically focused on immediate or near-term objectives.

Cost Reduction

Strategies or actions taken to lower the total expenses incurred by a business.