A Company That Practices Disintermediation Is Doing Which of the Following

question 29

Multiple Choice

A company that practices disintermediation is doing which of the following?

• A)estimating inventory based on forecasts of average demand
• B)using several distribution centers to streamline its delivery process
• C)utilizing data management systems to speed up the delivery process
• D)purchasing materials and goods from countries that are outside of the country's base operations
• E)eliminating intermediaries in the delivery of its products to consumers

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a specific price level.

Equilibrium

A market condition in which the equilibrium of supply and demand leads to price stability.

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product in demand, thus balancing supply and demand.

Surplus

A situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price, often leading to a decrease in price.