Which of the Following Is Not an Assumption of the Transportation

question 18

Multiple Choice

Which of the following is not an assumption of the transportation model?

• A) Actual supply and demand must be equal.
• B) Shipping costs per unit are constant per unit.
• C) Items to be shipped are homogeneous.
• D) There is only one transportation route between each source and destination.
• E) There is only one transportation mode between each source and destination.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Quantity Demanded

The total amount of a good or service consumers are willing and able to purchase at a specific price level.

Complements

Goods or services that are used together, where an increase in the demand for one leads to an increase in demand for the other.