Dips in the Economy and the Instant Price Comparisons Made

question 77

Multiple Choice

Dips in the economy and the instant price comparisons made possible by the Internet have contributed to ________.

• A) decreased consumer price sensitivity
• B) increased consumer price sensitivity
• C) a less direct relationship between supply and demand
• D) low brand equity for luxury goods
• E) decreased brand loyalty

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Definitions:

Short-Term Investments

Assets that are expected to be converted into cash, sold, or consumed within one year or one business cycle, whichever is longer.

Non-Interest-Bearing

A financial instrument or account that does not earn interest over time, implying that its value does not increase beyond the principal amount.

Promissory Note

A finance-related written assurance where one party obligates to pay the other a clearly defined monetary amount, either when required or at a particular future time.

Discounted

Refers to the process of determining the present value of a future amount of money or stream of cash flows given a specific rate.