Which of the Following Will NOT Cause an Increase in the Supply

question 142

Multiple Choice

Which of the following will NOT cause an increase in the supply of good X?

• A)an improvement in the technology used to produce good X
• B)a decrease in the price of good Y, a substitute in production
• C)an increase in the price of inputs used to produce good X
• D)a decrease in the price of inputs used to produce good X

Recognize the role and implications of covenants in debt contracts.

Identify the conditions under which a firm may require more short-term financing and understand the impact of company policies (flexible vs. restrictive) on financing needs.

Comprehend different inventory financing arrangements and their implications for firms.

Understand the importance and mechanisms of securing short-term loans, including the use of collateral and the impact of various loan structures on a firm’s liquidity and cash flow.

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Definitions:

Purchase Economies

Cost advantages that a business can achieve by buying goods or services in large quantities, leading to lower per-unit costs.

Transportation Economies

The cost savings realized through efficient transportation logistics, including scale of operation, routing, and mode of transport selection.