If Kindle E-Readers and Nook E-Readers Are Substitutes,a Higher Price

question 111

Multiple Choice

If Kindle e-readers and Nook e-readers are substitutes,a higher price for Nooks would result in a(n)

• A)increase in the demand for Nooks.
• B)decrease in the demand for Nooks.
• C)increase in the demand for Kindles.
• D)decrease in the demand for Kindles.

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Definitions:

Rack Jobber

A company or individual who provides and stocks merchandise in stores, typically in specialty areas, and shares profits with the retailer or pays for shelf space.

Limited-Function Merchant Wholesaler

A wholesaler that offers a narrower range of services than full-service wholesalers, typically specializing in only certain kinds of products or functions.

Merchant Wholesaler

A type of intermediary that buys goods in bulk from manufacturers or producers and sells them in smaller quantities to retailers or other businesses.

Warehouse Club

A membership-based retail store offering a wide variety of merchandise, often in bulk and at lower prices than conventional retailers.