South African rapper, Cassper Nyovest, has launched a business venture manufacturing his very own clothing and shoes. It has been noted that the price of some of the supplies (fabric, leather and cotton) are going to increase next month. Considering this statement, discuss the concept of future price increases as a role for holding inventory for Cassper. Note: Provide at least two application points.
South African rapper, Cassper Nyovest, has launched a business venture manufacturing his very
own clothing and shoes.
It has been noted that the price of some of the supplies (fabric, leather and cotton)
are going to increase next month. Considering this statement, discuss the concept
of future price increases as a role for holding inventory for Cassper.
Note: Provide at least two application points.
The price of a stock can fluctuate due to many factors. The most common is the supply and demand of the product. If there are a lot of people who want to buy a product, the price will go up because there is less supply. If there are not many people who want to buy the product, it will go down because there is more supply.
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