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zysi [14]
3 years ago
13

Denny is the owner of a popular ice-cream parlor. He also has a retail distribution network in the form of ice-cream vans that g

o around the city. With the help of this distribution network, Denny is able to efficiently manage the movement of goods and keep the costs lower than other ice-cream shops. This is an example of _____.
Business
1 answer:
AysviL [449]3 years ago
6 0

This is an example of "Equilibrium in business"

<u>Explanation:</u>

Equilibrium is the state of balance between market supply and demand, and as a consequence, prices are stable. Over-supply of goods or services generally causes prices to fall, leading to higher demand. The offers and demand balance effect results in a stable state. Here as Denny have good retail distribution network which allow him to supply across city and maintain lower price due to good availability of ice creams. For Denny reaching to the customers was easy via vans, thus his ice-creams had lower price.

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