A Winery Introduced a Brand Wine That It Priced Twice

question 98

Multiple Choice

A winery introduced a brand wine that it priced twice as high as its other wine.This is an example of product extension by a(n) ________.

• A)downward line stretch
• B)product mix
• C)cannibalization strategy
• D)upward line stretch
• E)two-way stretch

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Definitions:

Reserve Bank

A central banking institution responsible for overseeing the monetary policy, issuing currency, and regulating the banking system of a country.

Required Reserve Ratio

The fraction of deposits that a bank is required by regulation to hold in reserve and not lend out, aiming to ensure bank liquidity and stability.

Money Supply

The total amount of monetary assets available in an economy at any specific time, including cash, coins, and balances held in checking and savings accounts.

Required Reserve Ratio

is the fraction of deposits that banks are required to keep on hand as reserves, rather than loaning them out.