Studies Indicate That the Demand for Fresh Tomatoes Is Much

question 76

Multiple Choice

Studies indicate that the demand for fresh tomatoes is much more elastic than the demand for salt. These findings reflect that

• A) tomatoes are a necessity while salt is a luxury.
• B) it takes longer for consumers to adjust to a change in the price of salt than to a change in the price of tomatoes.
• C) salt will not spoil as easily as fresh tomatoes.
• D) more good substitutes exist for fresh tomatoes than for salt.

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Definitions:

Fixed-price Policy

A pricing strategy where a product or service is sold at a specific price that does not change in response to market fluctuations or customer negotiations.

No Haggle

A pricing strategy where the seller sets a fixed price for a product or service, eliminating the need for negotiation.

CarMax Dealership

A chain of used-car dealerships in the United States known for its no-haggle pricing and comprehensive vehicle inspection process.

Fixed-price Policy

A pricing strategy where a product or service is sold at a consistent price, regardless of market changes.