Suppose the Company That Owns the Vending Machines on Your

question 45

Multiple Choice

Suppose the company that owns the vending machines on your campus has doubled the price of a can of soda. If they then still sell almost the same number of sodas per day, this suggests:

• A)students do not have good nutritional information.
• B)soda purchases represent a large fraction of students' budgets.
• C)there are few other places to purchase soda on campus.
• D)the price elasticity of demand for soda is equal to 1.

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Definitions:

Rate of Return

The increase or decrease in value of an investment during a particular time frame, represented as a percent of the investment's initial cost.

Supply Chain Network Design

The process of defining a supply chain's structure, including the selection of locations for production, storage facilities, and transportation routes.

Uncertainty

Denotes the lack of predictability in the outcome of events or in the availability of information, affecting decision-making processes and strategic planning.

Managers

Individuals responsible for directing and overseeing the operations and strategies of an organization or part of an organization.