Which of the following organizations would be most affected by the bullwhip effect?

1 answer:

6 0

In bullwhip effect , demand variability increases as one move up the supply chain away form the retail customer. The variability will increase as it move to the higher up.
An example of an organization that would be affected by this is : A coffee bean farm.

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Consider the relative liquidity of the following assets: Assets 1. A $50 bill 2. The funds in a savings account 3. A boat you ow

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Answer:

1,2,4,3

Explanation:

Liquidity measures how quickly an asset can be converted and used as a medium of exchange.

$50 bill is the most liquid because it can be readily used as a medium of exchange without any conversion.

The funds in a savings account is the second most liquid because because it must first be withdrawn from a bank account before it can be used as a medium of exchange. It can be converted to a medium of exchange within a day.

A bond issued by a publicly traded company is the third most liquid because it takes a longer period for it to be converted to cash.

A boat is the least liquid because it takes a long while to find a buyer for a boat.

I hope my answer helps you.

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As the average hourly wage increases from $18 per hour to $20 per hour, the quantity of frozen dinners demanded decreases from 3

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Answer:

The income elasticity of demand for frozen dinners is negative when there is an increase of hourly wages. -51%

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When the income elasticity is negative it means that the good is inferior so when the income is increased, the demand of the good decrease beacuse its demand change to a better quality good. For instance in this case a fresh meal.

income elasticity % = % change in quantity / % change in income

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