Understanding Demand and Supply

What key concept forces people to make choices due to limited resources?

• Supply

• Demand

• Scarcity

• Revenue

What is the opportunity cost of taking any action?

• The money spent on that action

• The loss of opportunity for an alternative action

• The demand generated from that action

• The time spent on making decisions

According to the Law of Demand, buyers want to pay ______ prices.

• Higher

• Lower

• Both higher and lower

• Neutral

The Law of Supply suggests that sellers want to sell at ______ prices.

• Higher

• Lower

• Constant

• Variable

What does demand refer to?

• The maximum production capacity of a company

• The amount of product a purchaser is willing and able to buy

• The cost of producing a product

• The company’s supply capacity

What does 'propensity to purchase' mean?

• The likelihood of consumers purchasing a product in the past

• The price consumers are willing to pay

• The probability of purchasing an organisation’s products in the future

• The method of managing demand

Which of the following is NOT a method for managing demand?

• Offering early-bird specials

• Increasing the supply chain

• Two-for-one coupons

• Using special promotions during slow periods

What is the primary factor that impacts all methods of managing demand?

• Marketing

• Price

• Supply chain

• Product features

What is demand forecasting?

• Estimating consumer demand for products in the future

• Controlling current demand

• Increasing supply to meet future demand

• Analyzing consumer behavior trends

A rolling calendar in demand forecasting covers how many months?

• 6 months

• 12 months

• 15 months

• 24 months