Question

Which of the following scenarios best describes the impact ethical factors can have on the law of supply and demand?

A. A coffee company must raise prices in order to offset losses caused by an earthquake that destroyed crops in injured farmers.

B. An apparel company decides to move production to another country where the cost of production and shipping are lower.

C. Use of social media companies product declines after article reveals a company has been collecting user data without permission.

D. A bottling company conducts massive layoffs when an advance in robotics enables and company to streamline the bottling process.

Answer 1

Answer: C

Step-by-step explanation:

The scenario that best describes the impact ethical factors can have on the law of supply and demand is C. In this scenario, the use of a social media company's product declines after an article reveals that the company has been collecting user data without permission. The company's unethical behavior has led to a loss of trust among its users, which has resulted in a decrease in demand for its product. This, in turn, has impacted the company's supply chain and profitability.