Mercedes Was Able to Successfully Introduce Its C-Class Car at $30,000

question 28

Multiple Choice

Mercedes was able to successfully introduce its C-Class car at $30,000 without injuring its ability to sell other Mercedes cars for $100,000 or more. Mercedes implemented a(n) ________.

• A) downward line stretch
• B) product line contraction
• C) cannibalization strategy
• D) upward line stretch
• E) value stretch

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Definitions:

Cost Of Inflation Reduction

refers to the expenses associated with implementing policies and measures to lower inflation within an economy.

Unemployment

The condition of being out of work and actively seeking employment but unable to find a job.

Permanent Increase

A lasting upward adjustment in size, amount, or value.

Real Output

The quantity of goods and services produced, adjusted for inflation, reflecting the true productivity of an economy.