Suppose the Demand for Butter Increases from 800 to 1,000

question 5

Multiple Choice

Suppose the demand for butter increases from 800 to 1,000 pounds when income falls from $40,000 to 30,000. Income elasticity is:

• A) 0.02.
• B) 50.
• C) -0.77.
• D) 0.77.

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Definitions:

Demonstration

A demonstration in sales is a direct presentation or exhibition of a product or service's features and benefits, aimed at persuading potential customers to make a purchase.

Open Ended Questions

Questions framed in a way that requires more than a simple yes or no response, encouraging a detailed and informative answer.

Close Ended Questions

Questions structured to elicit a simple, straightforward response, such as 'yes' or 'no', facilitating specific information gathering.

Benefit Statements

A communication tool used in sales and marketing that clearly outlines the advantages or positive outcomes a customer can expect from using a product or service.