Multiple Choice
The supply and demand curves for a product are as follows:
What is the equilibrium price and quantity of the product?
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3. The Market Forces of Supply and Demand
Supply and Demand: Quantitative Analysis
Multiple Choice
Which of the following is a common measure of supply chain performance?
A
Price elasticity of demand
B
Marginal utility
C
Order fulfillment rate
D
Consumer surplus
Verified step by step guidance1
Step 1: Understand the concept of supply chain performance, which refers to how effectively and efficiently a supply chain operates to meet customer demands and business goals.
Step 2: Recognize that common measures of supply chain performance typically focus on metrics related to delivery, inventory, cost, and customer satisfaction.
Step 3: Review the options given: 'Price elasticity of demand' measures responsiveness of quantity demanded to price changes, which relates to demand, not supply chain performance.
Step 4: 'Marginal utility' is a concept from consumer theory that measures additional satisfaction from consuming one more unit of a good, unrelated to supply chain metrics.
Step 5: 'Order fulfillment rate' measures the percentage of customer orders that are completed and delivered on time, making it a direct and common measure of supply chain performance.
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