Because of the Internet and E-Commerce, All Parts of the Value

question 75

True/False

Because of the Internet and e-commerce, all parts of the value chain can immediately know and react to changes in demand and supply. Thus, tight integration of the components of the value chain is no longer required.

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Definitions:

Elastic Demand

A situation in which the demand for a product is sensitive to price changes, meaning a small change in price leads to a larger change in quantity demanded.

Price Elasticity

An indicator that measures the impact on the quantity of a good demanded when there is a change in its price level.

Midpoint Method

A technique used to calculate elasticity by averaging the two points on a demand or supply curve and considering the percentage change from the average.

Price Elasticity

A measure of the sensitivity of demand for a product or service to a change in its price.