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Scenario 9

question 2

Multiple Choice

Scenario 9.1 Use the following to answer the questions.
The Walt Disney Company is a master at incorporating all the unique characteristics of digital media into their website. They know how to appeal to all types of consumers and utilize the full potential of digital media. The Disney website immediately catches your attention with sights and sounds that come alive. Not only can you catch a glimpse of an upcoming movie, but also connect with your favorite characters from movies past. The website offers age-appropriate games and activities, including the ability to create a fairy-tale cottage. The Disney Parks have their own links of course, along with Radio Disney, the Disney Store, family vacation packages, and an educator's corner. An adult or child can enjoy navigating through the electronic marketing of Disney.
Refer to Scenario 9.1. The Disney website is missing ____, because the website does not offer the opportunity for customers to directly communicate with Disney employees. Customers cannot express their needs and wants directly to the company.

Distinguish between elastic and inelastic supply and demand contexts in relation to tax efficiency.

Compare the effects of taxes across different market structures and goods.

Understand the implications of tax changes on labor supply decisions.

Assess how tax policy can influence the behavior of economic agents.

Definitions:

Variable Cost

Expenses that vary in relation to the amount of product or service generated by a company.

Sales Price

The final amount of money charged for a product or service, or the value that consumers are willing to pay.

Optimal Point

The most favorable position or condition that yields the maximum benefit or efficiency in a given situation, such as in investment or production.

Credit Policy

Rules a business adheres to for assessing a customer's eligibility for credit and the stipulations under which it is offered.