There Are Many Brands of Energy Drinks Available at Gas

question 15

Multiple Choice

There are many brands of energy drinks available at gas stations.The manufacturer of Red Bull energy drink heavily associates it with extreme sports through sponsorships and ads aimed at extreme sports enthusiasts.By putting its sponsors on cans,Red Bull hopes to create _____ so that customers will perceive why it is a better brand of sports drink than all the rest in the gas station.

• A) secondary demand
• B) selective demand
• C) primary demand
• D) pioneering demand
• E) utility of demand

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Definitions:

Demand Curve

A chart depicting how the cost of an item correlates with the amount of that item buyers are prepared to purchase.

Barriers to Entry

Economic, procedural, regulatory, or technological factors that obstruct or restrict the ability of new competitors to enter a market.

Economic Profits

The surplus achieved when revenue generated from business activities exceeds both explicit and implicit costs.

Long Run

A period of time in which all factors of production and costs are variable, and firms can adjust all inputs.