The Phenomenon in Which the Variability in the Size and Timing

question 29

Multiple Choice

The phenomenon in which the variability in the size and timing of orders increases at each stage of the supply chain is known as the ________ effect.

• A) accelerator
• B) butterfly
• C) bullwhip
• D) rainbow

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Definitions:

Marginal Utility

The additional satisfaction or benefit (utility) that a consumer derives from buying an additional unit of a commodity or service.

Iced Tea

A chilled form of tea, often sweetened and served with ice, popular as a refreshing beverage.

Budget Constraint

The limitations on the consumption bundles that a consumer can afford given their income and the prices of goods.

Consumption Possibilities

The set of all consumption bundles that can be consumed given a consumer’s income and prevailing prices.