Duds and Suds Is a Bar with a Country and Western

question 163

Multiple Choice

Duds and Suds is a bar with a country and western atmosphere. In addition to the bar, Duds and Suds has a gift shop that sells western clothing with its logo. Norman is the owner of the business and has recently enacted temporary price reductions through clearance sales, discounts, and nightly drink specials. What is Norman most likely trying to do?

• A)raise cash quickly.
• B)decrease costs.
• C)increase profitability.
• D)run off the competition.
• E)create a value image.

Apply the concept of utility maximization to adjustments in consumption when prices change.

Identify the impact of price changes on the consumption of goods and understand substitution effects.

Apply the concept of budget constraints to consumer decision-making.

Analyze the effect of income changes on the utility-maximizing combination of goods.

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Definitions:

BSC Performance Perspectives

A strategic planning and management system that organizations use to communicate what they are trying to accomplish, align the day-to-day work, and prioritize projects, products, and services.

Lagging Indicator

A metric that shows the performance of an economy, industry, or company after the fact and confirms trends rather than predicting them.

Cognitive Bias

Systematic patterns of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Balanced Scorecard

A strategic planning and management system that organizations use to communicate what they aim to accomplish, align day-to-day work with strategy, prioritize projects, and measure and monitor progress.