How Did Subway Carry Out Their Experiment to Test the Effect

question 47

Multiple Choice

How did Subway carry out their experiment to test the effect of $5 subs?

• A)They lowered the price of the sub throughout the summer of 2008.
• B)They tested the price of the sub at selected stores for a limited period of time.
• C)They tested the price of the sub at their flagship store.
• D)They conducted a survey to see if people would be willing to purchase the $5 sub.

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Definitions:

Money Supply

The total amount of money available in an economy at a specific time, including cash, coins, and balances held in bank accounts.

Interest-Bearing Assets

Investments or savings that earn interest over time, such as bonds, savings accounts, or loans.

Interest Rate

The percentage of a sum of money charged for its use, determining the cost of borrowing money or the return on savings and investments.

Money Market

A segment of the financial market in which financial instruments with high liquidity and short maturities are traded.