Scenario 10.2 Use the Following to Answer the Questions

question 241

Multiple Choice

Scenario 10.2
Use the following to answer the questions.
When Silk Soymilk began packaging its chocolate milk in single-serving sizes, the company chose drink boxes that did not need refrigeration. The boxes were only sold in shrink-wrapped sets of six. Single boxes were not available at grocery stores or convenience markets. Once the Silk chocolate product was selling well, they also began offering the Silk Soymilk vanilla flavor in the same type of packaging. The Silk Soymilk brand, logo, and look of the boxes were the same as its larger half-gallon versions. The only difference in packaging style was the color brown for chocolate milk and the color white for vanilla.
-Refer to Scenario 10.2. Which of the following is not a function of the packaging strategy chosen by Silk Soymilk?

• A)It protects and preserves the product.
• B)It offers convenience to customers.
• C)Its size and shape help make storage easier.
• D)It is less harmful to the environment.
• E)It most likely appeals to children and those with active lifestyles.

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Definitions:

Disposable Income

Disposable income for households after accounting for income taxes, meant for spending and saving.

Marginal Propensity

The ratio of change in an economic variable, such as consumption or saving, to a change in another variable, like income.

Disposable Income

The net income available to individuals or households after taxes have been deducted, available for spending, saving, or investing.

Consumption

The act of using goods and services by households, contributing to the overall demand in an economy.