If Good Growing Conditions Increase the Supply of Strawberries and Hot

question 413

Multiple Choice

If good growing conditions increase the supply of strawberries and hot weather increases the demand for strawberries, the quantity of strawberries bought

• A) increases and the price might rise, fall or not change.
• B) increases and the price rises.
• C) doesn't change and the price falls.
• D) doesn't change and the price rises.

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Definitions:

Unprofitable Segment

A part of an organization that consistently fails to contribute a positive net income or adds a financial loss to the company's overall performance.

Opportunity Cost

The revenue that is foregone from an alternative use of an asset, such as cash.

Make-Or-Buy Options

The decision-making process where a company chooses between manufacturing a product in-house or purchasing it from an external supplier.

Differential Revenue

The difference in revenue generated under two different scenarios or choices.