Which of the Following Statements Is NOT TRUE

question 205

Multiple Choice

Which of the following statements is NOT TRUE?

• A) Storing is a marketing function.
• B) Storing allows producers and intermediaries to keep stocks at convenient locations.
• C) Storing allows the producer to achieve economies of scale in production.
• D) Storing is necessary when production of goods doesn't match consumption.
• E) Storing can increase the value of goods, but does not involve costs.

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Definitions:

Consumer Surplus

The variance between the sum consumers are willing to shell out for a good or service and the sum they actually shell out.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to a balance in the market.

Producer Surplus

The discrepancy between the price at which producers are prepared to offer a good or service and the price they actually obtain.

Demand Shifts

Refers to the change in the quantity demanded of a good or service at any given price, caused by factors other than the price of the good itself.