Some Sales Managers Are Talking Shop

question 341

Multiple Choice

Some sales managers are talking shop. Which of the following quotations refers to a movement along the demand curve?

• A) ʺIt has been an unusually mild winter; our sales of wool scarves are down from last year.ʺ
• B) ʺSince our competitors raised their prices our sales have doubled.ʺ
• C) ʺWe decided to cut our prices, and the increase in our sales has been remarkable.ʺ
• D) none of the above

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Definitions:

Centralized Purchasing

A procurement strategy where purchasing decisions and processes are handled by a single, central department within an organization.

Equilibrium

a state in economics where supply equals demand, resulting in a stable market condition.

Trigger Strategy

A strategy in repeated games where a player's response is conditioned on past behavior, such as retaliating or cooperating based on the other player's previous actions.

Repeated Game

A strategic interaction that occurs multiple times, allowing players to potentially develop strategies based on past outcomes.