If the Price of a Good Falls by 15% Leading

question 33

Multiple Choice

If the price of a good falls by 15% leading to a 20% fall in the quantity demanded of its substitute, the cross-price elasticity for the two goods is _____.

• A) 0.75
• B) 1.33
• C) 5
• D) -5

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Definitions:

Repositioning

The strategy of altering the market position of a product or brand to target new demographics or change consumer perceptions.

Brand's Position

involves the unique place a brand occupies in the minds of consumers, distinguishing it from competitors in terms of attributes, benefits, or values.

Re-launching

The act of reintroducing a product, service, or brand to the market with significant updates or changes to its presentation, formulation, or positioning.