For Normal Goods Which of the Following Explains Why Demand

question 303

Multiple Choice

For normal goods which of the following explains why demand curves slope downward?

• A) prices and income
• B) substitutes and complements
• C) resources and technology
• D) substitution effect and income effect

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Definitions:

Bullwhip Effect

A phenomenon in supply chain management where small fluctuations in demand at the retail level cause increasingly larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.

Manufacturing

The process of producing goods through the combination of labor, machinery, tools, chemical or biological processing, or formulation.

Reactive Capability Strategy

A business approach focusing on the ability to respond to changes in market demand or operational challenges quickly and efficiently.

Machine Flexibility

The ability of a machine to quickly adapt to producing different types of products or parts without significant downtime or cost.