If a Manager Tries to Form Territories with Equal Sales

question 3

Multiple Choice

If a manager tries to form territories with equal sales potential, the territories will usually be unequal in geographic size; this will cause the salespeople with larger territories to

• A) develop larger income potentials.
• B) have to work longer and harder to generate a certain sales volume.
• C) work about the same amount, since potential is the same.
• D) have much larger sales than those salespeople with smaller territories.
• E) be limited to a smaller income potential.

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Definitions:

Quantity Purchased

The total number of units of a product or service bought by consumers in a specified period.

Price Elasticity

The evaluation of demand's reaction to fluctuations in the price of a particular good.

Responsiveness

The degree to which a variable responds to a change in an underlying factor, often used in economic contexts to describe changes in supply, demand, price, etc.

Price Elasticity

A measure of how much the quantity demanded or supplied of a product changes in response to a change in its price.