How Do Retailers React to a Surplus

question 54

Multiple Choice

How do retailers react to a surplus?

• A) The surplus has no effect on retailers.
• B) Competition forces sellers to reduce their prices.
• C) Competition forces retailers to offer more goods.
• D) The surplus will force sellers to increase their prices.

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Definitions:

Sales

The transactions involved in selling goods or services to customers, generating revenue for a business.

Foreign Exchange Risk

The potential for financial loss due to fluctuation in exchange rates affecting transactions in foreign currencies.

Spot Rate

The ongoing market cost at which a certain currency is being traded for instant delivery.

Balance Sheet

A balance sheet is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.