Drafi Arts Corp

question 83

Multiple Choice

Drafi Arts Corp. makes and sells original handicraft products. The management of the company has been successfully using a niche strategy for years. In this case, which of the following is most likely to be true of Drafi Arts Corp.?

• A)It serves only a limited geographic market.
• B)It offers products at a lower price than that of the competition.
• C)It develops products that are similar to those of its competitors.
• D)It lowers costs by removing frills and options from its products.

---

Definitions:

Total Revenue

The total income generated from the sale of goods or services before any expenses are subtracted.

Demand for Labor

The total amount of labor (number of workers or hours worked) that employers want to hire at various wage rates.

Elastic

Describes a situation in which the demand for a product is sensitive to price changes; a small price change results in a significant change in quantity demanded.

Demand Schedule

A demand schedule is a table that shows the quantity of a good or service that consumers are willing to purchase at various price points.