Assume Apples and Oranges Are Substitutes

question 139

Multiple Choice

Assume apples and oranges are substitutes.Suppose apple growers launch a successful advertising campaign that convinces consumers apples are a better product.As a result the cross-price elasticity of apples and oranges will become

• A)Less negative (move closer to zero).
• B)More negative.
• C)Less positive (move closer to zero).
• D)More positive.

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Definitions:

Trade Discount

A reduction granted by a supplier on the list or catalog prices of goods or services, often based on the volume of transactions.

Trade Discount

A reduction in the retail price of goods, granted by the wholesaler or manufacturer to the retailer for the purpose of resale.

Trade Discount

A reduction from the list price granted by a seller to a buyer, typically for bulk purchases or to business customers in a particular industry.

Trade Discount

A reduction in the listed price of goods or services, offered by sellers to buyers in the business-to-business market.