If Luxury Spas, Renew Spas, and Relax Spas Are All

question 103

Multiple Choice

If Luxury Spas, Renew Spas, and Relax Spas are all competing in the spa market and Relax Spas consistently is the first to change prices, Relax Spas might be _________.

• A)offering to be the price leader
• B)signaling to the other firms to consistently lower their prices
• C)signaling to the other firms to consistently maintain their prices
• D)signaling to the other firms to consistently raise their prices

---

Definitions:

Degree Celsius

A unit of measurement for temperature where 0 degrees represents the freezing point of water, and 100 degrees represents the boiling point at sea level.

Average Person

A hypothetical individual who represents the common or typical characteristics of a group, often used in statistical and economic models.

Trash

Waste material or unwanted items that are discarded, often sent to landfills or recycling centers for disposal.

Commodity Price Index

An index that measures the change over time in the price of a basket of commodities.