Anne Is a Manager at a Store That Sells Clothes

question 23

Multiple Choice

Anne is a manager at a store that sells clothes and accessories for both men and women. She notices that the jeans priced at $120 aren't selling very well. She wants to increase the sales of these jeans before the onset of the next season. She learns that there is direct relationship between the price and the sales of the clothes at her store. The approach Anne should take to achieve this is to _____.

• A)keep the prices the same but move the jeans to another section of the store
• B)lower the price of the jeans so that demand will increase
• C)raise the price of the jeans to make them seem more exclusive
• D)put jeans that are priced even higher next to the $120 jeans

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Definitions:

Market Prices

The current value at which an asset or service can be bought or sold in a marketplace.

Carrying Value

Carrying Value, also known as book value, is the value of an asset as it appears on a balance sheet, calculated by netting the asset against its accumulated depreciation.

Nonvoting Preferred Stock

A type of preferred stock that does not grant the holder voting rights in the company's shareholder meetings, typically in exchange for certain financial preferences.

Outstanding Shares

The total number of shares of stock that are currently owned by shareholders, including shares held by institutional investors and restricted shares held by insiders and company officers.