A Scatter Diagram with the Price of Peanut Butter on the Vertical

question 50

Multiple Choice

A scatter diagram with the price of peanut butter on the vertical axis and the price of jelly on the horizontal axis shows a negative relationship. If the price of jelly was placed on the vertical axis and the price of peanut butter was placed on the horizontal axis, the relationship would be a

• A) negative relationship, also called a direct relationship.
• B) negative relationship, also called an inverse relationship.
• C) positive relationship, also called a direct relationship.
• D) positive relationship, also called an inverse relationship.

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Definitions:

Commoditized

When a product becomes indistinguishable from others like it on the market and competes mainly on price.

Differentiation

The method of differentiating a product or service to make it appeal more to a specific target audience.

Utility

The total satisfaction or benefit derived from consuming a good or service.

Convenience

The aspect of a product or service that relates to the ease of use and the degree to which it saves time and effort for the consumer.