Which of the Following Statements Is TRUE

question 144

Multiple Choice

Which of the following statements is TRUE?
I. As more sellers enter a market, the supply of the product will increase.
II. If input prices increase, the supply of the product will be unaffected because firms pass the higher costs of production to consumers in the form of higher prices.
III. Firms respond to higher prices for their product by offering a larger quantity for sale.

• A) I and II
• B) II and III
• C) I, II, and III
• D) I and III

Recognize the strategies and implications of product line extensions.

Distinguish between different branding strategies such as multiproduct, multibranding, mixed branding, and private branding.

Analyze the risks and benefits associated with brand extension and product line extension strategies.

Identify the effects of branding strategies on advertising and promotion costs.

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Definitions:

Consequences

The outcomes or effects resulting from a particular action or set of conditions.

Negative Relationship

A relationship between two variables, X and Y, in which a decrease in X is associated with an increase in Y and an increase in X is associated with a decrease in Y.

Positive Relationship

A situation where two variables move in the same direction, meaning as one variable increases, the other variable also increases.

Inverse Relationship

A term used to describe a situation where the increase in one variable leads to the decrease in another, and vice versa.