A Cloth Manufacturing Company Requires Raw Materials Such as Cotton

question 56

Multiple Choice

A cloth manufacturing company requires raw materials such as cotton and jute for its range of products.To gain more knowledge about its needs, the company is guided by a set of documents that provides valuable information about the current trends in the industry.The document also gives various inputs on arriving at the solution for the problem at hand.This type of document is most likely to be in the nature of a:

• A)mission statement.
• B)débenture.
• C)reverse auction.
• D)bond.
• E)white paper.

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Definitions:

Perfectly Elastic Demand

A market situation in which demand for a product is infinitely sensitive to changes in price.

Inelastic Demand

A situation where the demand for a product or service does not significantly change in response to price alterations.

Elasticity Value

A measure in economics indicating how the quantity demanded or supplied of a good responds to changes in price or income.

Inelastic Demand

A situation in which the quantity demanded of a good or service changes by a relatively small amount in response to a change in its price.