The Fact That Automakers Buy Goods in Quantities That Represent

question 24

Multiple Choice

The fact that automakers buy goods in quantities that represent important volumes to their suppliers indicates a force of

• A) low customer bargaining power
• B) high customer bargaining power
• C) low supplier power
• D) high supplier power

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Definitions:

Elastic

A term used to describe a situation where the demand or supply for a good or service significantly changes in response to a change in price.

Inelastic

Describes a situation in demand or supply where the quantity demanded or supplied changes by a smaller percentage than the changes in price.

Illinois Commerce Commission

A regulatory agency in Illinois responsible for overseeing utility services, including electricity and gas, to ensure fair practices and rates for consumers.

Commuter Rates

The fares or fees charged for transportation services, especially for those traveling to and from work.