The Local Bakery Makes Such Great Cinnamon Rolls That Consumers

question 162

Multiple Choice

The local bakery makes such great cinnamon rolls that consumers do not respond much at all to a change in the price.If the owner is only interested in increasing revenue,she should

• A)lower the price of the cinnamon rolls.
• B)leave the price of the cinnamon rolls unchanged.
• C)raise the price of the cinnamon rolls.
• D)reduce costs.

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Definitions:

Organization

An arranged group of people with a specific purpose or activity, structured in a particular manner.

Inconsistency

The lack of coherence or uniformity in actions, values, methods, measures, principles, expectations, or outcomes.

Inseparability

A characteristic of services that highlights the simultaneous production and consumption, making separation of service from the provider impossible.

Inventory

The total amount of goods and materials held in stock by a business, warehouse, or other entity.