Figure 6.7 -Refer to Figure 6.7.If the Consumer Has $240 to Spend

question 29

Multiple Choice

Figure 6.7
-Refer to Figure 6.7.If the consumer has $240 to spend on DVDs and CDs, what is the price of a CD if the budget constraint is BC₂?

• A)$8
• B)$10
• C)$20
• D)$40

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Definitions:

Marketing Channel

Consists of individuals and firms involved in the process of making a product or service available for use or consumption by consumers or industrial users.

Ultimate Consumer

The final user of a product or service who does not plan to resell it.

Intermediaries

Entities that act as middlemen in the distribution process between producers and consumers, such as wholesalers and retailers.

Producer

An individual or organization that creates goods or services for sale to consumers or other businesses.