Why Is It Difficult to Get a Cab on a Rainy

question 56

Multiple Choice

Why is it difficult to get a cab on a rainy day?

• A)Cab drivers have backward bending daily supply curve
• B)Cab drivers must drive much slower when it rains
• C)The demand for cabs shifts left and the quantity of cabs supplied falls
• D)Cabs don't like to work on rainy day

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Definitions:

Objective-and-Task Method

A budgeting approach where the budget is set based on the cost of specific tasks or objectives that must be accomplished to achieve marketing goals.

Percentage-of-Sales Method

A budgeting technique for marketing or advertising that bases the budget on a fixed percentage of the sales revenue.

Affordable Method

A promotion-mix budgeting strategy in which firms set their promotion budget based on what they believe they can afford.

Promotional Budget

The allocation of financial resources dedicated to marketing and advertising activities over a specified period.