In Which Statement(s) Are "Demand" and "Quantity Demanded" Used Correctly

question 343

Multiple Choice

In which statement(s) are "demand" and "quantity demanded" used correctly? (I) "An increase in the price of coffee will reduce the quantity demanded of coffee."
(II) "An increase in the price of coffee will reduce the demand for cream used in coffee."

• A) in both statements I and II
• B) in statement I only
• C) in statement II only
• D) in neither statements I nor II

---

Definitions:

Cost of Understocking

The financial and operational impact of not having enough inventory to meet demand, leading to lost sales and dissatisfied customers.

Product Availability

The extent to which goods or services can be purchased from suppliers by consumers at any given time.

Order Cycles

The complete sequence of processes from when an order is placed until it is received by the customer.

Leftover Inventory

Refers to items that remain unsold at the end of a sales period, often leading to discounted selling or storage.