Examlex

Solved

Inventories Help Manufacturers Cope with Unexpected Changes in the Supply

question 47

True/False

Inventories help manufacturers cope with unexpected changes in the supply of their resources or in the demand for their products.


Definitions:

Elasticity

A measure in economics to show how the quantity demanded or supplied of a good or service responds to a change in price.

Price Ceiling

A legally imposed maximum price on a good or service, intended to keep prices low for buyers.

Shortage/Surplus

A market condition where the quantity demanded is greater than the quantity supplied (shortage) or the quantity supplied is greater than the quantity demanded (surplus).

Price Floor

A government or group-imposed limit that prevents prices of goods or services from falling below a certain level.

Related Questions