If Prices at Wendy's Rise, More Consumers Buy Their Meals

question 45

Multiple Choice

If prices at Wendy's rise, more consumers buy their meals at McDonald's and fewer consumers buy their meals at Wendy's.This is an example of

• A)consumers' action to boycott Wendy's.
• B)commodity substitution.
• C)new good bias.
• D)outlet substitution.
• E)quality change bias.

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Definitions:

Accounts Receivable

Outstanding payments from customers to a firm for delivered or utilized goods or services awaiting settlement.

Merchandise Return

The process whereby customers return previously purchased merchandise to the seller for a refund, store credit, or exchange.

Selling Expenses

Costs incurred directly and indirectly in selling a product, such as commissions, advertising, and promotional materials.

Advertising Merchandise

Promotional items branded with a logo or slogan and distributed as part of a marketing strategy.