If a Company Offers a "Buy One, Get One Free

question 47

Multiple Choice

If a company offers a "buy one, get one free" (BOGO) promotion

• A)consumers will buy enough units of the good to get the free units.
• B)the consumer's budget constraint will not be a straight line.
• C)the company would be better off just reducing the price by 50%.
• D)All of the above.

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Definitions:

U.S. Financial Assets

Economic resources or possessions of value owned or controlled by individuals or entities in the United States, including stocks, bonds, and bank deposits.

Living Beyond Its Means

A situation wherein an entity (like a government, company, or individual) spends more money than it receives in income or revenue, leading to debt accumulation.

Foreigners Own

The ownership of domestic assets such as property, companies, or government debt by non-resident individuals or entities.

Balance On Current Account

A measure of a country's international trade where the value of imports and exports of goods, services, and monetary transfers are accounted.