Which of the Following Is a Consequence of Parallel Distribution

question 11

Multiple Choice

Which of the following is a consequence of parallel distribution?

• A) Strained relationships between the manufacturer and its authorized distributors
• B) Erosion of brand equity
• C) More complicated sales forecasting
• D) All of the above
• E) (a) and (b) only

---

Definitions:

Price Elasticities

Measures how responsive the quantity demanded or supplied of a good is to a change in its price, indicating its sensitivity.

Surpluses

The excess of production or supply over demand in the market.

Free Market Equilibrium

A state in an unrestricted market where supply equals demand, and prices stabilize without external interventions.

Market Price

The existing value at which an asset or service is offered for buying or selling in the marketplace.