A New Watch Manufacturer Would Like to Determine the Market

question 65

Multiple Choice

A new watch manufacturer would like to determine the market price of a new line of watches.How could the manufacturer MOST effectively determine the market price?

• A) Place several of the new watches on sale at a watch store and see which sells most quickly.
• B) Arrange to sell the watches in a number of diverse auctions.
• C) Set the price of one watch higher than another and see which sells the most quickly.
• D) Survey potential customers and retailers on what they think the price should be.
• E) Canvass executives from competing companies about what they think the price should be.

---

Definitions:

Riegle-Neal Interstate Banking

Legislation passed in the United States in 1994 that allowed bank holding companies to acquire banks in other states, effectively removing barriers to interstate banking.

FDIC

Stands for the Federal Deposit Insurance Corporation, a U.S. government agency that provides deposit insurance to depositors in American commercial banks and savings institutions, protecting them against bank failure.

Federal Reserve

The central banking system of the United States, responsible for setting monetary policy, regulating banks, and ensuring financial stability.

Savings And Loan Crisis

A financial crisis in the 1980s and 1990s involving the insolvency of numerous savings and loan associations in the United States.