Scenario 11.1 Use the Scenario to Answer the Questions

question 184

Multiple Choice

Scenario 11.1
Use the scenario to answer the questions.
Cheetos Fat-free Crunchies is a product developed through continuous innovation. Cheetos engineered a technique for making low-fat snacks that taste delicious and also remain fresh for a longer duration. It introduced Fat-free Crunchies in limited markets in 2012 and began nationwide distribution in 2013.
About 18 months later, a series of ads by Cheetos' competitors was aired to counterclaim that Cheetos Crunchies actually contained 1.5 grams of fat along with some percentage of preservatives and additives. Research showed that Cheetos Crunchies was not well-received by certain groups of customers. To retain its consumer base, Cheetos reduced the remaining fat of Chrunchies to 0 grams, took out the preservatives, and improved the taste.
-Refer to Scenario 11.1. The new improved Cheetos Fat-Free Crunchies is an example of .

• A) product bundling
• B) aesthetic modification
• C) functional modification
• D) brand extension
• E) innovative modification

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Definitions:

Supply Increase

A shift to the right in the supply curve, indicating that producers are willing and able to sell more of the good at each possible price.

Jet Fuel

A type of aviation fuel designed for use in aircraft powered by gas-turbine engines.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell.

Air Travel Market

The sector of the economy that deals with selling and buying of flight services among airlines and passengers.