Quality Is So Important in Franchising That Most Franchisors Retain

question 53

True/False

Quality is so important in franchising that most franchisors retain the right to terminate the franchise contract and to repurchase the outlet if a franchisee fails to maintain quality standards.

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Definitions:

Relatively Elastic

Describes a situation where a small change in price leads to a relatively larger change in the quantity demanded or supplied of a good or service.

Demand for Gasoline

Describes how much gasoline consumers want to buy at various prices, often influenced by factors like income and price of substitutes.

Price Inelastic

Describes a situation where the quantity demanded or supplied of a good or service changes little when its price changes.

Short Run

A time period in economics during which at least one input or factor of production is fixed and cannot be changed, limiting the immediate response to changes in demand or technology.