Suppose a Market Is in Equilibrium

question 29

Multiple Choice

Suppose a market is in equilibrium.If a price floor is set in this market below the equilibrium price it is likely that:

• A)quantity demanded will increase.
• B)a surplus will arise.
• C)a shortage will arise.
• D)the quantity sold will rise.
• E)the market will remain in equilibrium.

Distinguish between different incentives such as promotional allowances and cash discounts.

Define and differentiate between FOB origin pricing and other geographic pricing strategies.

Comprehend the implications and motivations behind promotional allowances.

Understand everyday low pricing (EDLP) strategy and its impact on marketing and pricing tactics.

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Definitions:

Phobias

An intense, irrational fear of specific objects, activities, or situations.

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about a number of different things.

Obsessive-Compulsive Disorder

A mental health disorder characterized by recurrent, unwanted thoughts (obsessions) and repetitive behaviors (compulsions) that the individual feels driven to perform.

Panic Attack

A sudden onset of intense fear or discomfort, often accompanied by physical symptoms such as rapid heartbeat and shortness of breath.