Which of the Following Statements About Close Buyer-Seller Relationships in Business

question 238

Multiple Choice

Which of the following statements about close buyer-seller relationships in business markets is False?

• A) In close relationships, buyers and suppliers can share tasks at a lower total cost of doing business.
• B) The buyer can gain a more dependable source of supply.
• C) Buyers and suppliers can engage in joint problem solving.
• D) Long-term commitments on larger order quantities often cause the supplier to raise its selling price.
• E) None of these statements is False.

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Definitions:

Increase in V

In economic contexts, often refers to an increase in the velocity of money, which is the rate at which money is exchanged in an economy.

Unemployment

The situation in which individuals who are capable of working and willing to work cannot find employment.

Monetarists

Economists who believe that changes in the money supply are the most significant determinants of economic growth, inflation, and unemployment rates.

Quantity Theory of Money

The Quantity Theory of Money is an economic theory that asserts the general price level of goods and services is directly proportional to the amount of money in circulation.