The Coffee Express Company Is Located in a Business District

question 18

Multiple Choice

The Coffee Express company is located in a business district with few customers on the weekend.To attract customers on Saturday and Sundays,it reduces its prices on these two days.This is an example of

• A) dynamic pricing.
• B) the substitution effect.
• C) the income effect.
• D) the target return effect.
• E) cross-price elasticity.

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Definitions:

Interest Rates

The cost of borrowing money or the return on investment for savings, typically expressed as a percentage.

Collateral

An asset that a borrower offers to a lender to secure a loan, which the lender can seize if the loan is not repaid.