In Some Markets Consumers May Buy Many Different Brands of a Product.Which

question 18

Multiple Choice

In some markets consumers may buy many different brands of a product.Which of the statements below best represents a situation where demand for a particular brand would be very elastic?

• A) "The different brands are almost identical so I always buy the cheapest."
• B) "I use so little of that product that when I do buy it,I don't pay much attention to the price."
• C) "The brand I buy is so superior to other available brands that I hardly consider the others."
• D) "I pinch pennies in buying other products,but like most people I feel I owe it to myself to get the best brand of this product."

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Definitions:

Erosion Cost

Costs that occur when a new project or investment negatively affects the revenues or profits of existing projects or investments.

Class A Spa

An upscale facility offering premium health and beauty treatments, differentiated by service, amenities, or exclusivity criteria.

Present Value

The worth at present of a sum of money expected in the future or of ongoing cash payments, when discounted at a specific rate of return.

Capital Cost Allowance (CCA)

A form of tax depreciation that allows a business to deduct the cost of a depreciable property, such as buildings or equipment, over a number of years.