Zulily Protects Itself from Buyer Power and Intense Rivalry from Competitors

question 54

Multiple Choice

Zulily protects itself from buyer power and intense rivalry from competitors by

• A) increasing the bargaining power of its customers.
• B) paying close attention to costs.
• C) increasing costs.
• D) increasing the buyer power.

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Definitions:

Temporary Price

A price set for a product or service for a limited period before it is expected to change.

Surplus

The situation in which the quantity of a good supplied exceeds the quantity demanded, often leading to lower prices.

Shortage

A market condition when the demand for a product exceeds its supply at a specific price.

Demand and Supply of Wheat

The relationship between the quantity of wheat that producers are willing to sell at various prices and the quantity that consumers are willing to buy.