After Running a Promotional Campaign,the Owners of a Local Shoe

question 2

Multiple Choice

After running a promotional campaign,the owners of a local shoe store decided to decrease the prices for the shoes sold in their store.One can imply that

• A)The promotional expenditures made the demand for their shoes more elastic
• B)The promotional expenditures made the demand for their shoes more inelastic
• C)The promotional expenditures has no effect on the shoe demand elasticity
• D)The owners got it wrong.To cover the promotional expenses,they should have raised the prices.

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Definitions:

Shopkeeper

An individual who owns, operates, or manages a retail store, selling goods to the public.

High Price

A situation where the cost of a good or service is considerably above the average or expected price.

Bargaining Position

The relative power or leverage that a party has in negotiation settings, which can influence the terms and outcome.

Supplier Merges

The process of two or more suppliers combining their operations or assets into a single entity, potentially affecting market competition and supply chain dynamics.