The Advantage of Offering a Price Promotion During Periods of Low

question 82

Multiple Choice

The advantage of offering a price promotion during periods of low demand to shift some of the demand into a slow period is

• A)a demand pattern that is less expensive to supply.
• B)very high inventory costs because inventory needs to be carried from period to period.
• C)in the fact that a firm could get by with a smaller,more expensive factory.
• D)much of the expensive capacity would go unused during most months when demand was lower.

---

Definitions:

Real Estate Loans

Loans specifically provided for purchasing property, including both residential and commercial properties.

Medium Of Exchange

Items sellers generally accept and buyers generally use to pay for a good or service; the primary job of money.

Keynesian Motive

An economic theory proposed by John Maynard Keynes, suggesting that demand for goods and services is the driving force in an economy, particularly during times of economic downturn.

Inflation

The pace at which overall prices for products and services increase, diminishing the value of money as time passes.