Javier Was Thrilled to Learn His Company Has Decided to Invest

question 16

Multiple Choice

Javier was thrilled to learn his company has decided to invest a great deal of money in the product he is managing. He knows that even with its recent high rate of growth and the fact that it dominates its market, he needs more money to establish it firmly. Using the BCG portfolio analysis, Javier's product would be classified as a(n)

• A)star.
• B)cash cow.
• C)question mark.
• D)dog.
• E)anchor.

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Definitions:

Income Elasticity of Demand

Indicates how the quantity demanded of a good changes in response to a change in consumers' income.

Monthly Income

The total amount of earnings received every month from work, investments, benefits, and other sources.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to normal goods where demand increases with rising income.

Product X

A placeholder term for an unspecified or hypothetical product used in discussions or analyses.