When There Is an Increase in Supply and an Increase

question 100

Multiple Choice

When there is an increase in supply and an increase in demand, what will happen with certainty?

• A) Price will increase.
• B) Price will decrease.
• C) Quantity will increase.
• D) Quantity will decrease.

---

Definitions:

Forward Integration

A business strategy where a company extends its operations by moving towards the direct control of its distribution or supply chain further down the production process.

Retailer

A business or person that sells goods to the consumer, as opposed to a wholesaler or supplier.

Retailer-sponsored Cooperative

A group of independent retailers who collectively purchase goods, share marketing efforts, and distribution channels to compete with larger chains effectively.

Service-sponsored Retail System

A retail network established by a service provider to sell or distribute its services directly to consumers.