Which of the Following Would Cause Both the Equilibrium Price

question 330

Multiple Choice

Which of the following would cause both the equilibrium price and equilibrium quantity of day-old bread (an inferior good) to increase

• A)an increase in consumer income
• B)a decrease in consumer income
• C)greater government restrictions on agricultural chemicals
• D)fewer government restrictions on agricultural chemicals

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Definitions:

Service Level

A measure of the quality of service provided, often defined as the percentage of customer demands that are met on time.

Reorder Period

The time interval between placing orders for inventory replenishment to ensure consistent supply without incurring stockouts or excessive holding costs.

Safety Stock

Inventory kept on hand to protect against fluctuations in demand or supply, ensuring that there are sufficient units available to meet customer needs.