ENTREPRENEURIAL OPERATIONS
SUPPLY CHAIN MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What happens to cost when new warehouse opens
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Rise
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Decline
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Rise then decline
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Decline then raise
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Explanation:
Detailed explanation-1: -It’s a fundamental economic principle that when supply exceeds demand for a good or service, prices fall. When demand exceeds supply, prices tend to rise.
Detailed explanation-2: -An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.
Detailed explanation-3: -Answer and Explanation: This option is correct because a decrease in the price of a good will result in an increase in the quantity demanded. It means the law of demand operates such that the demand curve is downward sloping due to the substitution effect.
There is 1 question to complete.