A Shift of the U

question 149

Multiple Choice

A shift of the U.S. demand curve for Mexican pesos to the left and a decrease in the pesos price per dollar would likely result from:

• A) an increase in the U.S. inflation rate relative to the rate in Mexico.
• B) a change in U.S. consumers' tastes away from Mexican products and toward products made in South Korea, India, and Taiwan.
• C) U.S. buyers perceiving that domestically-produced products are of a lower quality than products made in Mexico.
• D) all of the above.

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Definitions:

Store Brands

Products that are branded and sold by a retailer under its own label.

Kirkland

A brand name owned by Costco Wholesale Corporation that offers a wide range of products, including groceries and household goods.

Fighting Brands

These are lower-priced products launched by companies to compete with generic or store brands and to protect their premium brands' market share without lowering the price of their main products.

Brand Extensions

A marketing strategy where a company uses an existing brand name to launch a new or modified product in a different product category.