A Reduction in an Input Price Will Cause a Change

question 134

True/False

A reduction in an input price will cause a change in quantity supplied but not a change in supply.

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Definitions:

Raw Materials

The unprocessed natural resources or substances that are used in the manufacturing of goods, providing the basic material from which products are made.

Finished Products

Goods that have completed the manufacturing process but have not yet been sold or distributed to the end user.

JIT Action

An initiative or measure taken to implement Just-In-Time production, aiming to reduce waste by receiving goods only as they are needed in the production process.

Inventory

Inventory is the quantity of goods that a business has on hand, including materials, components, and finished products.