A Decrease in Supply Will Cause an Increase in Price

question 202

True/False

A decrease in supply will cause an increase in price, which will cause a decrease in quantity demanded.

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Definitions:

Journal Entry

The record of a transaction entered in a journal, made up of at least one debit and one credit.

Work In Process

Inventory that includes items that are partially completed; it is not yet a finished product but has been moved from raw materials inventory.

Machine Breakdowns

Unplanned events where machinery or equipment fails and stops production, leading to potential delays and increased costs.

Lean Manufacturing

Lean manufacturing is a production methodology aimed at minimizing waste within manufacturing systems while simultaneously maximizing productivity.