Four Consumers Each Want to Buy a Refrigerator

question 73

Multiple Choice

Four consumers each want to buy a refrigerator.Without a retail intermediary like Best Buy,fridge manufacturers Walton,Sub-Zero,Bosch,Kenmore,and General Electric would each have to make four contacts to reach the four consumers who are in the target market,for a total of twenty transactions.But when Best Buy acts as an intermediary between the producer and consumers,each producer needs to make only one contact,reducing the number to nine transactions.This is an example of a ______.

• A) retailer offering contact efficiency
• B) manufacturer offering exchange utility
• C) manufacturer using additive manufacturing
• D) retailer using contract logistics

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Definitions:

Supply Curve

A visual diagram that illustrates the connection between the cost of a product and the amount of the product that sellers are prepared to make available for purchase.

Demand Curve

A graph illustrating how much of a good consumers will buy at different prices, showing the relationship between price and quantity demanded.

Good Sold

Items or services that have been purchased by consumers.

Tax on Sellers

A financial charge or levy imposed on product producers or sellers by the government, which often leads to the market price of the product increasing to cover the cost of the tax.