The Best Product Strategy to Deal with Users' Declining Household

question 134

Multiple Choice

The best product strategy to deal with users' declining household size would be:

• A) discontinue the current product
• B) develop a new product size
• C) connect with reference groups
• D) change the brand image
• E) advertise utilitarian features

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Definitions:

Income Elasticity

A measure of how the demand for a good or service changes in response to changes in income.

Supply Elasticity

The measure of responsiveness of the quantity of a good supplied to a change in its price.

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust all inputs in response to market conditions.

Short Run

A period in economics during which at least one input or resource is fixed, limiting the ability of the firm to adjust all inputs freely.