Joel Has a 1966 Mustang, Which He Sells to Susie

question 32

True/False

Joel has a 1966 Mustang, which he sells to Susie, an avid car collector. Susie is pleased since she paid $8,000 for the car but would have been willing to pay $11,000 for the car. Susie's consumer surplus is $2,000.

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Definitions:

Free Samples

A marketing strategy where small quantities of the product are given away for free to consumers to try and increase awareness or sales.

Pull Strategy

A marketing approach where businesses aim to create demand for a product or service directly from customers, leading them to pull the product through the distribution channel.

Ultimate Consumers

End-users who purchase products or services for personal use rather than for resale or further production.

Promotional Mix

The combination of marketing strategies and methods a company uses to promote its brand or products, including advertising, sales promotion, public relations, and direct marketing.