A Manufacturer's Inventory Consists of Raw Materials,work in Process,and Finished

question 122

True/False

A manufacturer's inventory consists of raw materials,work in process,and finished goods.

---

Definitions:

Law of Supply

It states that, all else equal, an increase in the price of a good or service will lead to an increase in the quantity supplied.

Law of Demand

An economic principle stating that the quantity demanded of a good decreases as its price increases, all else being equal, and vice versa.

Diminishing Marginal Utility

Diminishing marginal utility is the principle stating that as a person consumes more of a good, the satisfaction gained from consuming each additional unit decreases.

Income Effect

Refers to the change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.