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For a particular industry, Supply Efficiency is measured in terms of the actual supply of a product as a percentage of its demand. Similarly, the Market Potential measures the demand for a product compared in percentage terms to the production capacity for that product. The graph below shows the Supply Efficiency and Market Potential for a product in this industry. 
 
 
 
Q. If the product supply remains unchanged for the given period, what trend does the Production Capacity show?
  • a)
    Industry capacity steadily increases during the given period.
  • b)
    Industry capacity steadily decreases during the given period.
  • c)
    Industry capacity fluctuates during the given period.
  • d)
    Industry capacity remains the same during the given period. 
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
For a particular industry, Supply Efficiency is measured in terms of t...
Solution: Consider the solution to the first question.
Supply/Production Capacity = (Supply Efficiency/100) x (Market Potential/100) Let the supply for each year be 1 unit. Production Capacity = 10000/(Supply Efficiency x Market Potential) Hence, Production Capacity for each year is: 2012: 10000/(65 x 80) = 1.923 2013: 10000/(70 x 90) = 1.587 
2014: 10000/(60 x 80) = 2.083 2015: 10000/(65 x 80) = 1.923 Thus, the Production Capacity fluctuates each year.
Hence, option 3. 
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For a particular industry, Supply Efficiency is measured in terms of the actual supply of a product as a percentage of its demand. Similarly, the Market Potential measures the demand for a product compared in percentage terms to the production capacity for that product. The graph below shows the Supply Efficiency and Market Potential for a product in this industry.Q. If the product supply remains unchanged for the given period, what trend does the Production Capacity show?a)Industry capacity steadily increases during the given period.b)Industry capacity steadily decreases during the given period.c)Industry capacity fluctuates during the given period.d)Industry capacity remains the same during the given period.Correct answer is option 'C'. Can you explain this answer?
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For a particular industry, Supply Efficiency is measured in terms of the actual supply of a product as a percentage of its demand. Similarly, the Market Potential measures the demand for a product compared in percentage terms to the production capacity for that product. The graph below shows the Supply Efficiency and Market Potential for a product in this industry.Q. If the product supply remains unchanged for the given period, what trend does the Production Capacity show?a)Industry capacity steadily increases during the given period.b)Industry capacity steadily decreases during the given period.c)Industry capacity fluctuates during the given period.d)Industry capacity remains the same during the given period.Correct answer is option 'C'. Can you explain this answer? for CAT 2025 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about For a particular industry, Supply Efficiency is measured in terms of the actual supply of a product as a percentage of its demand. Similarly, the Market Potential measures the demand for a product compared in percentage terms to the production capacity for that product. The graph below shows the Supply Efficiency and Market Potential for a product in this industry.Q. If the product supply remains unchanged for the given period, what trend does the Production Capacity show?a)Industry capacity steadily increases during the given period.b)Industry capacity steadily decreases during the given period.c)Industry capacity fluctuates during the given period.d)Industry capacity remains the same during the given period.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for For a particular industry, Supply Efficiency is measured in terms of the actual supply of a product as a percentage of its demand. Similarly, the Market Potential measures the demand for a product compared in percentage terms to the production capacity for that product. The graph below shows the Supply Efficiency and Market Potential for a product in this industry.Q. If the product supply remains unchanged for the given period, what trend does the Production Capacity show?a)Industry capacity steadily increases during the given period.b)Industry capacity steadily decreases during the given period.c)Industry capacity fluctuates during the given period.d)Industry capacity remains the same during the given period.Correct answer is option 'C'. Can you explain this answer?.
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