If the Cross-Price Elasticity Between Two Goods Is Positive, Then

question 74

Multiple Choice

If the cross-price elasticity between two goods is positive, then it is most likely that the two goods are

• A)both inferior goods.
• B)both luxury goods.
• C)complements.
• D)substitutes.
• E)necessities.

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Definitions:

Marketing Mix

The set of actionable marketing tools—Product, Price, Promotion, and Place—that the firm uses to pursue its marketing objectives in the target market.

Volume Discounts

A pricing strategy where the price per unit of goods decreases as the quantity purchased increases.

Economies of Scale

Enterprises gain financial benefits from their size of operations, usually experiencing a reduction in the cost per unit produced as the scale of the operation grows.

Push Strategy

A marketing approach that involves taking the product directly to the customer through whatever means to ensure the customer is aware of the existence of the product.