Suppose Consumer Income Increases

question 150

Multiple Choice

Suppose consumer income increases.If wine is a normal good, what will happen to the equilibrium price and producer surplus?

• A)both the equilibrium price and the producer surplus will decrease
• B)both the equilibrium price and the producer surplus will increase
• C)the equilibrium price will decrease and the producer surplus will increase
• D)the equilibrium price will increase and the producer surplus will decrease

Understand the cycle view and the push/pull view of the supply chain.

Explain the strategic importance of supply chain macro processes.

Analyze supply chain strategies of different companies and their impact on supply chain performance.

Describe the flow of information, products, and finances in a supply chain.

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Definitions:

Broker Commission

A fee paid to a broker for their services, usually a percentage of the transaction value.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Lower Of Cost

A method used in accounting to value and report assets and inventory at the lower of its historical cost or current market value.

Market

A place or mechanism where parties engage in exchange of goods, services, or information.