Subbranding Involves

question 34

Multiple Choice

Subbranding involves

• A) having one firm manufacture a product and a second firm distribute it all under the same name.
• B) changing a brand name of a product line extension product by making it "New and Improved!"
• C) combining a corporate brand with a new brand to distinguish a part of its product line from others.
• D) creating a knockoff version of a product and changing the spelling of the name ("chikin" nuggets).
• E) using the same name for the original product and all subsequent product line and brand extensions.

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Definitions:

Quantity

The amount or number of a material or immaterial good that is considered separately.

Consumer Surplus

The gap between the total sum consumers can and will pay for a good or service versus what they actually spend.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, measured above the supply curve.

Market Equilibrium

Market equilibrium occurs when the quantity demanded by consumers perfectly matches the quantity supplied by producers, resulting in no excess supply or demand within the market.