A Business Buys Candy and Gum from Many Different Manufacturers

question 69

Multiple Choice

A business buys candy and gum from many different manufacturers and then resells the items to a variety of different stores. The business is an example of a(n) ________.

• A) independent intermediary
• B) manufacturer-owned intermediary
• C) disintermediator
• D) diverter
• E) brokerage company

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Definitions:

Elastic

A term used in economics to describe a situation where the quantity demanded or supplied of a good or service is highly responsive to changes in its price.

Substitutes

Goods or services that can replace each other in use, where an increase in the price of one leads to an increase in demand for the other.

Industry Supply Curve

A graphical representation showing the relationship between the price of a good and the total output of that good supplied by an industry at various price levels.

Barriers To Entry

Barriers to entry are obstacles that make it difficult for new competitors to enter a market, including high costs, strict regulations, and established brand loyalty.