Which of the Following Factors Would Most Likely Result in a Dramatic

question 5

Multiple Choice

Which of the following factors would most likely result in a dramatic change in demand?

• A)Cheaper production technology
• B)An expectations about future prices
• C)The multiplier effect
• D)The 80/20 principle
• E)A change in the price of raw materials used in the production process

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Definitions:

Marginal Cost

Marginal cost refers to the increase in total cost that arises from producing one additional unit of a good or service.

Block Pricing

A pricing strategy where different quantities of a product or service are sold at different prices, usually implying that larger quantities are sold at a lower per-unit price.

First-Degree Price Discrimination

Practice of charging each customer her reservation price.

Marginal Revenue

The increase in revenue resulting from the sale of one additional unit of a product or service.