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If a commodity index shows that the price of a commodity is continually rising, what does this indicate about the market?
Suggested Answer: D
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you would use a restricted approach when interest is likely to be high. The buyer needs a method of de-selecting unsuitable bidders and creating a shortlist of acceptable organisations.
For complex requirements you could use both an open or restrictive tender- the difference between the approaches is about how many bids you're likely to get rather than the complexity of it.
32 comments · newest first
LA
Lakeesha
11 months ago
A monopoly? That seems a bit extreme!
JI
Jimmie
12 months ago
Not sure about that, could just be speculation.
RO
Rosalind
12 months ago
Surprised to see prices rising like this!
FL
Flo
1 year ago
I don't know, could be other factors at play.
AL
Albert
1 year ago
Definitely means demand is exceeding supply!
RO
Robt
1 year ago
I don't think it's a monopoly situation, but I can't recall why. It seems like rising prices usually relate to supply and demand dynamics.
MA
Mammie
1 year ago
I'm a bit confused; could it also mean there's a threat of substitution? I feel like I read something about that.
DE
Delisa
1 year ago
I remember a practice question that discussed how rising prices often indicate strong demand, so I lean towards option B.
SA
Sabina
1 year ago
I think if the price is continually rising, it might mean that demand is exceeding supply, but I'm not completely sure.
LA
Laurel
1 year ago
Okay, let me think this through. If the commodity price is continually rising, that must mean demand is exceeding supply. So I'm going to go with answer choice B.
EN
Ena
1 year ago
Hmm, I'm not totally sure about this one. I know it has to do with the relationship between supply and demand, but I'm not sure which answer choice best fits the situation described.
KY
Kyoko
1 year ago
This seems like a straightforward question about supply and demand. I'm pretty confident I can figure this out.
JA
Janna
1 year ago
Wait, I'm a little confused. Could the rising price also indicate a monopoly in the market? I'm not sure if that's the best answer, but I want to make sure I'm considering all the possibilities.
JO
Jovita
1 year ago
B) demand is exceeding supply? That's what they want us to think! I'm going with A) there is little demand in the marketplace. The man is trying to trick us, I tell you!
BE
Bernardo
1 year ago
I'm stumped on this one. Maybe I should have paid more attention in my Econ 101 class. Or maybe I should just ask my dog - he seems to know more about economics than I do.
HO
Hortencia
1 year ago
B) demand is exceeding supply
RE
Reita
1 year ago
C) there is a threat of substitution
HA
Harris
1 year ago
B) demand is exceeding supply
ME
Melissa
1 year ago
A) demand is exceeding supply
HA
Harrison
1 year ago
I'll have to go with C) there is a threat of substitution. I mean, why else would the prices be going up, other than people looking for alternatives?
CA
Carmelina
1 year ago
C) there is a threat of substitution
AY
Ayesha
1 year ago
B) demand is exceeding supply
PA
Pansy
1 year ago
A) that there is little demand in the marketplace
DO
Dorathy
2 years ago
But could it also mean there is a threat of substitution if prices keep rising?
IL
Ilda
2 years ago
I'm going with D) the marketplace is a monopoly. That's just common sense, right? If prices are constantly rising, it's gotta be a monopoly!
KR
Kristel
2 years ago
D) the marketplace is a monopoly
CO
Corrie
2 years ago
C) there is a threat of substitution
KI
Kimi
2 years ago
B) demand is exceeding supply
FR
Freeman
2 years ago
A) that there is little demand in the marketplace
TH
Thomasena
2 years ago
Clearly, the correct answer is B) demand is exceeding supply. Any first-year economics student could tell you that!
LY
Lyndia
2 years ago
I agree with Clarinda, when demand exceeds supply, prices go up.
CL
Clarinda
2 years ago
I think if the price of a commodity is rising, it means demand is exceeding supply.