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When One Retailer Put a Picture of an Aloe Vera

question 63

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When one retailer put a picture of an aloe vera leaf and the wording "aloe vera" on the surface of the mattress,consumers assumed that aloe vera was a component of the mattress cover and the retailer had great difficulty dispelling this misconception.This is an example of ________.


Definitions:

Perfectly Inelastic Demand Curve

A perfectly vertical demand curve; no matter what the price is, the quantity demanded remains the same.

Very Inelastic

Describes a situation in which the demand for a product or service shows little to no response to changes in price.

Market Period

An extremely short duration in which the supply of a good is fixed, unable to adjust to changes in demand, typically because the period is so brief.

Productive Capacity

The maximum output a firm or economy can produce when using all available resources efficiently.

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