If the Total Expenditure on Photocopiers Increases When the Price

question 59

Multiple Choice

If the total expenditure on photocopiers increases when the price of photocopiers rises,the price elasticity of demand is

• A)greater than one (demand is elastic).
• B)less than one (demand is inelastic).
• C)equal to one (demand is unit elastic).
• D)exactly zero.
• E)not determinable from the information given.

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Definitions:

Phantom Demand

A phenomenon where perceived demand for a product exceeds the actual demand, often due to forecasting errors or miscommunication within the supply chain.

Supply Planning

The process of determining how best to meet future supply needs, taking into account production capacities, material availability, and demand forecasts.

Collaborative Planning

A strategy where multiple stakeholders work together in the planning process to improve supply chain efficiency and meet shared goals.

CPFR

Collaborative Planning, Forecasting, and Replenishment, a business practice that combines the intelligence of multiple trading partners in the planning and fulfillment of customer demands.