A New Product Comes Out That Has Better Quality Than

question 81

Multiple Choice

A new product comes out that has better quality than the old product, and has a lower manufacturing cost. What is the impact on the product using the supply and demand model?

• A) demand and supply will both decrease; thus, quantity will decrease
• B) demand and supply will both increase; thus, quantity will increase
• C) demand and supply will both decrease; thus, price will decrease
• D) demand and supply will both increase; thus, price will increase

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Definitions:

Lead Times

The periods required for the completion of processes or activities, especially from the point of order to the delivery of goods.

Supply Chain Managers

Professionals responsible for overseeing and managing the entire supply chain process to ensure efficiency, cost-effectiveness, and timely delivery of products.

Backup Sourcing

Is the strategy of establishing alternative suppliers to ensure the continuity of supply in case of primary supplier failures.

Margin Lost

The reduction in potential earnings or profit due to inefficiencies, increased costs, or missed opportunities.