Adding a Complementary Product to What Is Currently Being Produced

question 91

Multiple Choice

Adding a complementary product to what is currently being produced is a demand management strategy used when:

• A) demand exceeds capacity.
• B) capacity exceeds demand for a product that has stable demand.
• C) the existing product has seasonal or cyclical demand.
• D) price increases have failed to bring about demand management.
• E) efficiency exceeds 100 percent.

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Definitions:

Workplace

Refers to any location, environment, or setting where individuals engage in work-related activities or occupations.

Equilibrium Wage

is the wage rate at which the supply of labor equals the demand for labor in the labor market.

Demand for Labor

The total amount of labor that employers want to hire at various wage rates, during a certain period.

Supply and Demand

The fundamental economic model that explains how the market price of a product is determined by the quantity of the product that producers are willing to supply and the quantity that consumers are willing to purchase.