Why Might a Can of Similac Sell for About $25

question 11

Multiple Choice

Why might a can of Similac sell for about $25 in the U.S. but sell for about $9 in the Netherlands?

• A)Similac may be trying to penetrate the Netherlands market.
• B)The Dutch government might have required the company to sell at a low price.
• C)The competition in the Netherlands may offer lower prices than in the U.S.
• D)All of the above are possible reasons.

---

Definitions:

Seasonal Effect

A pattern observed in data that occurs at regular intervals throughout a year due to season-specific events or behaviors.

Trend and Seasonality

Components of time series data analysis, where trend refers to the long-term movement, and seasonality refers to patterns within a fixed period.

Deseasonalized Time Series

A time series from which seasonal effects have been removed, allowing for the clearer identification of trends and patterns.

Cyclical Effects

Economic or market changes that occur in predictable cycles, often related to changes in business activity, interest rates, and economic policies.