객관식
An increase in the supply of a good will increase the total revenue producers receive if:
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4. Elasticity
Elasticity Summary
객관식
Small changes in consumer demand can result in large variations in orders placed because of the:
A
income elasticity of demand
B
cross-price elasticity
C
bullwhip effect
D
law of diminishing marginal utility
검증된 단계별 안내1
Step 1: Understand the context of the problem, which involves how small changes in consumer demand can lead to large variations in orders placed by firms in the supply chain.
Step 2: Recognize that the 'income elasticity of demand' measures how quantity demanded changes with consumer income, which does not directly explain large order variations from small demand changes.
Step 3: Note that 'cross-price elasticity' measures how the demand for one good changes in response to the price change of another good, which also does not explain the amplification of order variations.
Step 4: Recall the 'law of diminishing marginal utility' which describes how additional units of a good provide less additional satisfaction, unrelated to order fluctuations in supply chains.
Step 5: Identify the 'bullwhip effect' as the phenomenon where small fluctuations in consumer demand cause progressively larger fluctuations in orders up the supply chain, explaining the large variations in orders placed.
