Which of the Following New Products Is the Best Example

question 127

Multiple Choice

Which of the following new products is the best example of the lowest level of risk from the company's point of view?

• A)adding Ball Park Beef Franks with Cheese to the Ball Park Franks line
• B)moving from production of landline telephones to smartphones
• C)marketing the first Apple computer
• D)changing the formula from Coca-Cola to New Coke and then back to Coca-Cola Classic
• E)offering online marketing classes rebranded under a new college name

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Definitions:

Elastic Demand

A situation in which the quantity demanded of a good or service significantly changes in response to a change in price.

Close Substitutes

Products or services that can easily replace one another in usage or consumption.

Demand Curves

Graphs showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage change.