Clay Market Began as a Retailer of Terracotta Pots and Garden

question 151

Multiple Choice

Clay Market began as a retailer of terracotta pots and garden figures imported from Turkey and Mexico. It has since added Turkish rugs and fabrics, leather-trimmed purses, and a line of women's clothes for its customers. This activity is indicative of which of the following strategies?

• A)vertical integration
• B)market penetration
• C)diversification
• D)product development

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Definitions:

Excess Supply

A market situation where the quantity of a good or service supplied is greater than the quantity demanded at the current price.

Deflation

Deflation is a decrease in the general price level of goods and services in an economy over a period, indicating negative inflation.

Money Demand Curve

A graphical representation illustrating the relationship between the quantity of money demanded and the interest rate, showing how they vary inversely.

Inflation Rate

The annual rate at which the cost of goods and services rises within an economy, reflecting a growth in price levels over time.