In Addition to Merchandise and Payments,information Flows Throughout a Supply

question 3

Multiple Choice

In addition to merchandise and payments,information flows throughout a supply chain.All of the following statements are a good characterization of the flow of information in a supply chain except

• A) a manufacturer will send and receive information from buyers, stores, and distribution centers.
• B) stores will send and receive information from manufacturers, buyers, distribution centers, and customers.
• C) distribution centers will send and receive information from stores and manufacturers.
• D) customers will send and receive information from stores and manufacturers.
• E) buyers will send and receive information from stores and manufacturers.

Understand the concept of equilibrium price and how market forces drive prices to this point.

Recognize how changes in supply and demand affect market equilibrium.

Understand the concept of surplus and shortage and their eventual impacts on the market.

Identify the effects of government interventions such as price floors and price ceilings on market equilibrium.

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Definitions:

Inverse Relationship

Describes a relationship between two variables in which one variable increases as the other decreases, and vice versa.

Interaction Effect

effect of one independent variable on the dependent variable at the different levels of another independent variable.

Main Effect

Effect of an independent variable on the dependent variable within a factorial research design.

Simple Effect

Effect of one independent variable at one of the levels of another independent variable.