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Scenario 12

question 105

Multiple Choice

Scenario 12.2 Use the following to answer the questions.
The BASF Chemical Company in Germany has developed a new rubberized coating. The product has an application for cell phones and other hand-held electronic devices that gives them protection from falls and scratches. BASF plans to market the product directly to businesses that manufacture the casings for these types of products. BASF currently uses a system of salespeople headquartered in Germany, while its primary business customers are in China.
Refer to Scenario 12.2. BASF has decided to offer discounts to its businesses customers in the form of the following: For each order of $100,000 or more during the next 90 days, the buyer will receive a rebate of 5 percent. This type of pricing would be an example of ____ discounts.

Definitions:

Price Elasticity of Supply

A measure of how much the quantity supplied of a good responds to a change in the price of that good, with higher elasticity indicating greater responsiveness.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specified period of time.

"Just Say No"

A slogan popularized during the Reagan administration to discourage children and teens from engaging in illegal drug use.

Drug Education

Educational programs aimed at providing information about drug use and misuse, with the goal of preventing drug addiction and promoting healthy decision-making.