The wealth effect refers to the fact that when the price falls, the real value of household wealth rises and consumption will also rise. The wealth effect causes movement along the demand and supply curve due to the value of money and items changing. The wealth effect is used to determine people spending more money when the value of their assets rise.
Small changes in consumer demand can result in large variations in orders placed because of the Bullwhip Effect. Thus the correct answer is D.
<h3>What is a consumer?</h3>
The consumer is referred as an end user of any product or service. He is the person who utilizes or takes the benefit of the products purchased. The person who buys a product is called a customer.
Demand estimations result in ineffective supply chains due to the bullwhip effect which is a characteristic of distribution channels. As one moves higher up the supply chain, it informs of increasing inventory variations in reaction to variations in consumer demand.
Therefore, option D Bullwhip effect is appropriate.
Learn more about the Bullwhip effect, here:
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The complete question is attached below-
Small changes in consumer demand can result in large variations in orders placed because of the:
A) Supply chain
B) Safety stock requirement
C) Lead time effect
D) Bullwhip effect
E) FCFS scheduling
Answer:
See explanation Section
Explanation:
See the following images to get the proper explanations and step-by-step answer.
C) convenience de others don’t make most of its revenues from those items
Answer:
C. Estimate credit losses.
Explanation:
the client prepared aged triad balance of account receivable is generally included in audit documents so that the evaluation of estimated credit losses can be done.
Therefore, This aging is best used by the auditors to Estimate credit losses.
