An Increase in Demand and a Decrease in Supply Will

question 166

Multiple Choice

An increase in demand and a decrease in supply will lead to an

• A) unambiguous increases in both price and quantity.
• B) unambiguous decreases in both price and quantity.
• C) an unambiguous increase in quantity, but the effect on price is indeterminate.
• D) an unambiguous increase in price, but the effect on quantity is indeterminate.

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Definitions:

Identifying Alternatives

The process of defining and evaluating different options or courses of action in decision-making.

Lean Business Model

A philosophy that emphasizes eliminating waste while delivering products or services that meet customer needs.

Elimination of Waste

This term typically refers to efforts to reduce non-value-adding activities in a process, often in the context of lean manufacturing or production to improve efficiency and effectiveness.

Process Reengineering

Process Reengineering involves the radical redesign of core business processes to achieve dramatic improvements in productivity, cycle times, and quality.