Refer to the Graph Shown

question 114

Multiple Choice

Refer to the graph shown. After an increase in supply, the market is in equilibrium where the demand curve intersects S₁. In this new equilibrium, producer surplus is equal to:

• A) 900.
• B) 1,260.
• C) 2,520.
• D) 2,940.

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Definitions:

Sales Quota

The minimum desired sales level for an individual or team for a specified period of time.

Specified Period

A specified period refers to a distinct, predefined duration of time during which certain activities are carried out or certain conditions apply, often detailed in contracts, plans, and schedules.

Incremental Productivity Method

A cost-based sales force sizing approach that compares the cost of adding one salesperson to expected additional sales revenue; the company will keep adding salespeople as long as the revenue exceeds the added cost.

Market Potential

This is an estimate of the maximum total sales of a product or service by all vendors to all potential customers within a specific market segment.