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In Extreme Cases, the Negative WOM Attached to One Company

question 94

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In extreme cases, the negative WOM attached to one company can have affects that spill over to an entire industry.


Definitions:

Price Decrease

A reduction in the cost of goods or services, which can affect demand, supply, and economic equilibrium.

Determinant

A factor or condition that decisively affects the nature or outcome of something, often used in economics to discuss variables impacting demand, supply, or price.

Inputs

Resources used in the production process, including labor, capital, and materials.

Related Goods

Goods that are connected in some way, often through being complements or substitutes, affecting each other's demand and supply.

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