You Have Decided to Open a Pet Store and Have

question 57

Multiple Choice

You have decided to open a pet store and have engaged in a contract with Dog & Cat Centers, Inc. You and the company have drawn up an agreement that allows you to use the company's name and its proven method of doing business, to receive training, and to use its advertising materials. In this agreement, Dog & Cat is the ____ and you are the ____.

• A) entrepreneur; corporation
• B) franchisor; franchisee
• C) employee; employer
• D) entrepreneur; local chain
• E) corporation; manager

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Definitions:

Price Elastic

Refers to the degree to which the quantity demanded or supplied of a good or service changes in response to a change in its price.

Necessities

Basic needs essential for maintaining life, such as food, water, shelter, and clothing, which take precedence over other types of spending.

Elasticity Coefficient

A measure used to show the responsiveness of the quantity demanded or supplied to a change in one of its determinants, like price or income.

Supply

A schedule or curve that shows the various amounts of a product that producers are willing and able to make available for sale at each of a series of possible prices during a specified period of time.