In the Long Run, If the Prices of Goods and Services

question 9

Multiple Choice

In the long run, if the prices of goods and services are higher than before the aggregate quantity:

• A) supplied will be higher.
• B) demanded will be lower.
• C) supplied will not change.
• D) demanded will be higher.

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Definitions:

Keiretsu

A closely linked alliance of businesses in Japan, often including manufacturers and suppliers, which cooperate to ensure mutual success.

Net Profit Margin

A financial metric that calculates the percentage of net profits earned with respect to sales revenue, indicating the efficiency of a company in converting sales into actual profits.

Supply-Chain Efficiencies

The optimization of activities in the supply chain to minimize costs and waste while maximizing speed and quality.

Increase In Profit

The growth in net earnings resulting from operations, often driven by increased sales, cost reduction, or improved productivity.