If the price is so high that vendors find too many unsold bottles remaining in inventory, they might dispose of their excess inventory by
A. creating a surplus.
B. lowering the price per bottle.
C. raising the price per bottle.
D. closing early.
Answer: B
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Which of the following is true?
a. To reduce cannibalization among products, reposition a product so that it does not directly compete with the other b. After acquiring a substitute product, raise prices on both the products c. After acquiring a complementary product, lower prices on both the products d. All of the above
The market for cigarettes likely has a:
A. highly elastic demand. B. slightly elastic demand. C. highly inelastic demand. D. slightly inelastic demand.
Refer to the table below. If the child buys either chocolates or hard candies one piece at a time, what will be his first two purchases?
A child is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derived from each product are as shown in the following table:
A. A hard candy, followed by another hard candy
B. A hard candy, followed by a chocolate
C. A chocolate, followed by a hard candy
D. A chocolate, followed by another chocolate
Why do investors engage in arbitrage?
What will be an ideal response?