Other Things Constant, What Will Be the Effect of a Decrease

question 8

Multiple Choice

Other things constant, what will be the effect of a decrease in the price of fertilizer on the market for wheat?

• A) an increase the supply of wheat
• B) an increase the demand for wheat
• C) a decrease the supply of wheat
• D) a decrease the demand for wheat

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Definitions:

Test Marketing

The process of launching a new product or service in a limited market area to evaluate its potential before a wider release.

Simulated Test Markets

A marketing technique where consumer reaction to a product is tested in a simulated environment prior to its actual launch.

Standard Test Markets

Controlled market areas where new products or marketing campaigns are tested before a nationwide or international launch.

Cannibalization

A business phenomenon where a company’s new product eats into the sales of its existing products.