In Which of the Following Instances Are Industry Members Not

question 52

Multiple Choice

In which of the following instances are industry members not subject to stronger competitive pressures from substitute products?

• A) The costs to buyers of switching over to the substitutes are low.
• B) Buyers are dubious about using substitutes.
• C) The quality and performance of the substitutes is well matched to what buyers need to meet their requirements.
• D) Buyer brand loyalty is weak.
• E) Substitutes are readily available at competitive prices.

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Definitions:

Aggregate Supply

The aggregate amount of products and services that companies within an economy intend to sell over a designated timeframe.

Aggregate Demand

The complete requirement for every product and service within an economy, at a specific aggregate price level over a particular time frame.

Golden Age

A period in history marked by peace, prosperity, and significant advancements in arts, science, and culture.

Keynesian Economics

Keynesian Economics is an economic theory stating that government intervention is necessary to manage aggregate demand in order to address or prevent economic recessions.