Based on Marketing Data,a Large Building Materials Retailer Decides to Sell

question 4

Multiple Choice

Based on marketing data,a large building materials retailer decides to sell lumber at a discounted rate in Louisiana.The campaign is successful,and the company decides to extend the discount over the long run.According to the law of one price,we can expect

• A) prices for all lumber to decrease.
• B) the price of lumber of the same type to decrease.
• C) the price of lumber of the same type to decrease near Louisiana.
• D) prices of lumber to decrease in Louisiana but increase in other states.
• E) prices of lumber to gradually increase in Louisiana and decrease in other states.

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Definitions:

Law on the Promotion

Legislation enacted to support and encourage certain activities, industries, or practices within a legal jurisdiction for economic or societal benefits.

Leasehold Estate

The leased property.

Premises

Land and the buildings on it, referred to especially in the context of business or law.

Rental Area

The specific portion of a property that is available for lease or rent to tenants.