If a 10 Percent Increase in the Price of Product

question 108

Multiple Choice

If a 10 percent increase in the price of product X causes the demand for product Y to decrease by 15 percent,then:

• A) X and Y are substitutes.
• B) X and Y are complements.
• C) X and Y are independent goods.
• D) the demand for X is elastic.

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Definitions:

SPIN Approach

stands for Situation, Problem, Implication, and Need-Payoff, a consultative selling technique that focuses on asking the right questions to understand and address customer needs effectively.

SPIN Approach

A sales technique that focuses on asking questions about Situation, Problem, Implication, and Need-payoff to close deals.

Third Category

In a classification system, the additional or alternative group that items, ideas, or solutions can be placed into beyond the primary two options.

Need-Payoff Question

A Need-Payoff Question is a sales technique that encourages prospective customers to consider the benefits and value of a product or service, focusing on solving specific needs.