Taco Bell Has Been Very Inventive in Partnering with Companies

question 192

Multiple Choice

Taco Bell has been very inventive in partnering with companies such as Frito Lay to create new menu items. Recently Taco Bell developed the Nacho Cheese Doritos Locos Tacos, a Taco Supreme® made with premium seasoned beef, crisp lettuce, diced juicy red ripe tomatoes, real cheddar cheese, and topped with cool reduced-fat sour cream, in a shell made from Nacho Cheese Doritos® Chips. Prior to the partnership and roll-out of the product throughout the Taco Bell system, a _______ was conducted where several "test" stores carried the products for a limited time and Taco Bell and Frito Lay could measure the actual sales to gauge the strength of the brand and opportunity for success.

• A) market test
• B) market analysis
• C) sales forecast
• D) company sales prediction

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Definitions:

Elasticity Measures

These are metrics used in economics to assess how the quantity demanded or supplied of a good changes in response to changes in price or other factors.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater than one indicating a high responsiveness.

Elasticity

A measure in economics of how the quantity demanded or supplied of a good changes in response to changes in price or other factors.

Considered Elastic

A description for goods or services whose demand or supply is significantly responsive to changes in price.