Good a Has a Price Elasticity of Demand of

question 62

Multiple Choice

Good A has a price elasticity of demand of .27, while good B has a price elasticity of demand of 2.9. To raise the most tax revenue, the government should:

• A) place a unit tax on good A.
• B) place a unit tax on good B.
• C) raise the price elasticity of demand for good A.
• D) subsidize the production of good B.

Grasp the importance of cultural sensitivity and the potential repercussions of cultural insensitivity in global marketing.

Understand the role of technology in facilitating global marketing strategies.

Recognize the significance of consumer confidence in the economy and its effect on spending behavior.

Identify the major external factors that influence the marketing environment of a firm.

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Definitions:

Indian Rupees

The official currency of India, symbolized as ₹ and abbreviated as INR, used for all forms of transactions within the country.

Import

The act of bringing goods or services into one country from another for the purpose of trade.

Interest Rate Parity

A theory suggesting that the difference in interest rates between two countries will be equal to the differential between the forward exchange rate and the spot exchange rate.

British Security

A financial instrument issued in the UK that represents either equity in a company, debt obligations, or other rights to ownership or profit.