The question is incomplete and should state "Recent rains increase the demand for kayaks, as paddlers want to take advantage of the exciting river conditions on the Oconee river. New plastic technology makes kayaks less expensive to make, as a result, one should expect the equilibrium price of kayaks to purchased to fall and the equilibrium quantity of the kayaks to raise." The questions is also a true or false question. The answer will be false. It is false because both the equilibrium price will raise and so will the quantity. The increase in demand will will create a new curve in the demand which will raise the prices and the companies will make more kayaks.
Gross purchases represent all the purchases a business made in a particular period. It includes returns outwards ( purchases returns), discounts and allowances received.
Net purchases are calculated by subtracting purchase returns, discounts received, and allowances from gross purchases.
Therefore, Net Purchases + Purchases Returns and Allowances + Purchase Discounts= gross purchases.
