Due to rapidly rising overhead costs and increases in raw material prices, Framarx Corporation was forced to raise the price of its waxed and coated paper by 35 percent. (The paper is used between frozen hamburger patties to keep the patties from freezing together.) Framarx is the leading manufacturer in this industry, and its competitors will follow suit. While the sales force for Framarx believes the price increase will result in a drop in sales, its marketing manager disagrees because the demand for the waxed and coated paper is more than likely:
A. resistant
B. inelastic
C. derived
D. elastic
E. bundled
Answer: B
You might also like to view...
Leasing of personal property is based on state law modeled after provisions of the Uniform Commercial Code.
Answer the following statement true (T) or false (F)
________ represent buyers or sellers on a more permanent basis than brokers
A) Distributors B) Franchisees C) Agents D) Retailers E) Manufacturers
A court ruled that a town government can condemn private homes so that the homes can be torn down and the land can be used by local developers to build offices, restaurants and stores, which will increase the tax revenues of the town
Which of the following ethical norms is illustrated in this scenario? A) freedom B) security C) justice D) efficiency
Obtaining funds from private investors:
A. involves a great deal of time and expense. B. is a public offering. C. is covered by Regulation D. D. is inappropriate for new ventures.