What Is a Potential Disadvantage of Direct Selling

question 83

Multiple Choice

What is a potential disadvantage of direct selling?

• A) Commissions for salespeople are usually low.
• B) Some customers view direct selling negatively.
• C) Personal attention tends to be lacking.
• D) Product demonstrations are difficult in this type of selling.
• E) Consumers must go out of their way.

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Definitions:

Price Elasticity

An economic measure indicating how the quantity demanded of a product changes in response to a change in the price of that product.

Equilibrium Quantity

The equilibrium quantity is the quantity of goods or services that is supplied and demanded at the equilibrium price, where supply equals demand.

Deadweight Loss

A reduction in economic effectiveness occurring when a good or service doesn't attain market equilibrium in an unrestricted market scenario.

Elastic Supply

A situation where the quantity supplied changes significantly in response to changes in price.