When Supply Falls and Demand Stays the Same

question 13

Multiple Choice

When supply falls and demand stays the same,

• A)equilibrium quantity rises.
• B)equilibrium quantity falls.
• C)equilibrium quantity stays the same.

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Definitions:

JIT Systems

Just-In-Time systems refer to an inventory management strategy aimed at increasing efficiency and reducing waste by receiving goods only as they are needed in the production process.

Similar Manufacturers

Companies within the same industry that produce similar products or services, often considered when analyzing market competition or industry standards.

Carrying Costs

The expenses associated with holding inventory, including storage, insurance, taxes, and opportunity costs.

Inventory Rises

An increase in the quantity of goods that a company holds, which could indicate either growing sales or overproduction.