Marketers Must React to the Economic Environment

question 138

Multiple Choice

Marketers must react to the economic environment. What are three economic areas of greatest concern?

• A)education, roles in families, income levels
• B)incomes, inflation, education
• C)incomes, inflation, and recession
• D)education, demographics, and recession

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Definitions:

Purely Competitive Industry

A market structure where many firms offer products or services that are similar, allowing for free entry and exit, and ensuring no single firm can influence market prices.

Long-Run Adjustments

Changes in the scale of production or in the input mix used by firms in response to economic conditions over a period where all inputs can be varied.

Market Supply

The total amount of a product or service that is available for purchase at various price points in a market at a given time.

Perfectly Elastic

A situation where the demand or supply for a good or service is infinitely responsive to changes in price.