Which of the Following Is an Example of a Change

question 225

Multiple Choice

Which of the following is an example of a change in derived demand?

• A)The demand for ice cream increases during a heat wave.
• B)The demand for large pickup trucks falls when the price of gasoline increases.
• C)The demand for buns increases when the price of food truck hot dogs increases.
• D)The demand for sunscreen falls when the local swimming pool increases prices.

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Definitions:

Postponement

The delay of any modifications or customization to a product as long as possible in the production process.

Accumulation

The process of gradually gathering or increasing amounts of something over time.

Inventory

The stock of goods or materials that a business holds at any given time, including raw materials, work-in-process, and finished goods.

Vendor-Managed Inventory

A replenishment strategy where the supplier is responsible for maintaining the inventory levels of their products at the customer's location.