A Locally Owned Spa, Alexander's, Is Interested in Adding a Tea

question 22

Multiple Choice

A locally owned spa, Alexander's, is interested in adding a tea room that not only offers specialty teas but an organic lunch menu. In order to determine how many of its
Regular customers would be interested in such an addition, Alexander's sent out a short e-
Mail questionnaire. The source of these data is

• A) the Internet.
• B) transactional.
• C) a designed survey.
• D) a designed experiment.
• E) secondary.

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Definitions:

Demand Schedule

A list or table showing how much of a good or service consumers will want to buy at different prices.

Elasticity

The degree to which the demand or supply of a product responds to changes in price or other factors, indicating how adjustments in price can influence market dynamics.

Income Elasticity

A measure of how much the demand for a good will change in response to a change in consumers' income.

Inferior Good

An inferior good is a type of good whose demand decreases when consumer income rises, in contrast to normal goods, whose demand increases with rising incomes.