Tick Tock, a Small Retailer of Quality Alarm Clocks, Sells

question 119

Multiple Choice

Tick Tock, a small retailer of quality alarm clocks, sells its product based on a 35% mark-up of cost.If the business's product costs are approximately R133, what is the selling price?

• A)R138.
• B)R198.
• C)R180.
• D)R289.

Recognize the relationship between income, price changes, and consumer's ability to afford preferred bundles.

Grasp the concept of producer's surplus and its relation to supply and demand.

Analyze the impact of price discounts and club memberships on consumers' welfare and surplus.

Understand the implications of quasilinear preferences on consumer surplus and compensating variations.

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Definitions:

Demand Elasticity

An indicator of the extent to which the demand for a product or service shifts as a result of variations in its price.

Locking in Customers

Refers to strategies used by companies to retain customers, often through the use of long-term contracts, proprietary technology, or loyalty programs.

Exclusive Government Contract

A legal agreement where a government grants only one company the right to provide goods or services, prohibiting competitors.

Acquire Patents

Process of obtaining legal rights to inventions or designs, ensuring exclusive use to the holder.