Capacity in Excess of Expected Demand That Is Intended to Offset

question 102

Multiple Choice

Capacity in excess of expected demand that is intended to offset uncertainty is a:

• A)margin protect.
• B)line balance.
• C)capacity cushion.
• D)timing bubble.
• E)positioning hedge.

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Definitions:

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing and able to purchase at a specific price level.

Market Demand Curve

A graph that shows the relationship between the price of a good and the quantity of that good all consumers are willing to purchase at each price level.

Consumption

The act of using goods and services for personal needs or wants.