What Is the Effect of an Increase in the Price

question 85

Multiple Choice

What is the effect of an increase in the price of resources?

• A)It will cause a decrease in the quantity supplied.
• B)It will cause an increase in demand.
• C)It will cause a decrease in demand.
• D)It will cause an increase in supply.
• E)It will cause a decrease in supply.

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Definitions:

Just-In-Time

An inventory strategy companies use to increase efficiency and decrease waste by receiving goods only as they are needed in the production process.

Procurement Process

The series of activities undertaken by an organization to acquire goods or services.

Iron Ore

A rock or mineral from which iron can be extracted for commercial use, typically the primary input in steelmaking.

Sourcing Decision

The process of selecting suppliers to provide goods or services needed by a business.