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If Both Buyers and Sellers Expect the Price of a Commodity

question 131

Multiple Choice

If both buyers and sellers expect the price of a commodity to rise in the future,it is likely that supply will ________ and demand will ________.


Definitions:

Operating Decisions

Choices made by management regarding the day-to-day operations of a business, such as pricing, inventory management, and employment levels.

Profit Center

A decentralized unit in which the manager has the responsibility and the authority to make decisions that affect both costs and revenues (and thus profits).

Department Manager

An individual responsible for overseeing the operations, staff, and performance of a specific department within an organization.

Authority

The power or right to give orders, make decisions, and enforce obedience.

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