Suppose a Firm in Each of the Two Markets Listed

question 535

Multiple Choice

Suppose a firm in each of the two markets listed below were to increase its price by 15 percent. In which pair would the firm in the first market listed experience a dramatic decline in sales, but the firm in the second market listed would not?

• A)cotton and soybeans
• B)gasoline and corn
• C)#2 lead pencils and college textbooks
• D)electricity and cable television

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Definitions:

Long Term Plans

Strategic plans outlined by an organization to achieve specific goals or visions in the future, typically over several years.

Objectives

Objectives are specific, measurable goals that organizations or individuals aim to achieve within a certain timeframe.

End States

The final outcomes or conditions that are achieved after the completion of processes or actions.