Which of the Following Would Not Be a Demand and Supply

question 20

Multiple Choice

Which of the following would not be a demand and supply characteristic in the later stages of a product's life cycle?

• A) Demand has become more certain and supply is predictable.
• B) Margins are lower due to an increase in competitive pressure.
• C) Product availability is crucial to capturing the market.
• D) Price becomes a significant factor in customer choice.
• E) All of the above are characteristics of the later stages.

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Definitions:

Onerous Contract

A contract where the unavoidable costs of meeting the obligations exceed the economic benefits expected to be received from it.

Unavoidable Costs

Costs that cannot be eliminated, reduced, or postponed, and must be incurred regardless of specific business decisions or changes in operations.

Present Value Method

A technique used to determine the present value of future cash flows or income streams to evaluate investment projects or financial products.

Net Market Value

The amount that could be obtained from selling an asset in the market after deducting any selling costs or liabilities.