You Are a Senior Sales and Marketing Analyst for a Major

question 78

Multiple Choice

You are a senior sales and marketing analyst for a major retailing firm in Wyoming. The marketing manager just stopped by your office with a very frustrated look on her face. She tells you that she is confused as to why, every time the company raises the sales price of its products, total revenue for the company declines.
Based on this information, which of the following explanations do you give her for why this situation occurs?

• A) The demand for the company's products is inelastic, so total revenue declines when prices are raised.
• B) The demand for the company's products is elastic, so total revenue declines when prices are raised.
• C) The demand for the company's products is elastic, so unit sales increase when prices are raised.
• D) The demand for the company's products is inelastic, so unit sales increase when prices are raised.
• E) The demand for the company's products is elastic, so fixed costs increase when prices are raised.

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Definitions:

Depressive Position

A concept from psychoanalytic theory referring to a developmental stage where a child begins to integrate good and bad aspects of themselves and others, possibly experiencing anxiety or depression in the process.

Melanie Klein

A psychoanalyst known for her work in child psychology and psychoanalytic theory, including the development of object relations theory.

Constructive

Serving a useful purpose; tending to build up, improve, or promote positive development.

Enhancing

Enhancing involves improving or augmenting the quality, value, or extent of something.