Consider the Competitive Markets for Running Shoes and Gym Memberships

question 4

Multiple Choice

Consider the competitive markets for running shoes and gym memberships, two complementary products.Assume that the laws of demand supply hold in each market.You observe the following facts in the two markets: in the running shoe market both the price and quantity traded fall; and in the gym membership market the price increases and the quantity traded falls.What change could explain these changes?

• A)The cost of rubber, an input into running shoes, increases.
• B)The cost of rubber, an input into running shoes, falls.
• C)New computer and security technology allows gyms to operate with fewer staff.
• D)New medical research shows that people that exercise regularly live longer and are happier.
• E)A new workplace safety law requires that all gyms need to have more and better trained staff.

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Definitions:

Goal Setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives to strive for in personal or professional contexts.

Performance

Performance is the act of carrying out a task or the level of efficiency and effectiveness with which tasks are completed, often used to evaluate employees or systems.

Goal Challenge

The process of setting objectives that stretch an individual's or team's capabilities and motivate performance.

Practical Example

A real-world scenario used to illustrate or explain a theory or concept.