Suppose That OPEC Currently Sets Oil Price at $1

question 91

Multiple Choice

Suppose that OPEC currently sets oil price at $1.50 per gallon, and the current consumption is 100 million gallons per day. The price elasticity of demand for oil is estimated to be 0.7 by the initial value method. If OPEC raises the oil price to $1.80 per gallon,

• A)quantity demanded decreases by 10 million gallons while total sales revenue increases by $4.4 million per day.
• B)quantity demanded decreases by 14 million gallons while total sales revenue increases by $4.8 million per day.
• C)quantity demanded decreases by 10 million gallons and total sales revenue decreases by $4.4 million per day.
• D)quantity demanded decreases by 14 million gallons and total sales revenue decreases by $4.8 million per day.

Understand different sales force compensation systems and their advantages.

Differentiate between types of distribution strategies employed by companies.

Comprehend the AIDA model of consumer behavior.

Recognize the importance of moving customers beyond interest to desire in successful promotion.

---

Definitions:

Moderator Variables

Variables that alter the strength or direction of the relationship between independent and dependent variables.

Critical Psychological States

Essential mental conditions that significantly contribute to employee motivation, satisfaction, and performance at work.

Job Characteristics Model

A theory that proposes that the nature of one's job or the characteristics of the task one is involved in directly affects job satisfaction, motivation, and productivity.

Client Relationships

Client relationships refer to the ongoing interactions, communications, and management of expectations between a business and its clients, crucial for achieving customer satisfaction and loyalty.