Use the Following to Answer the Questions

question 151

Multiple Choice

Use the following to answer the questions.
The BASF Chemical Company in Germany has developed a new rubberized coating.The product has an application for cell phones and other hand-held electronic devices that gives them protection from falls and scratches.BASF plans to market the product directly to businesses that manufacture the casings for these types of products.BASF currently uses a system of salespeople headquartered in Germany,while its primary business customers are in China.
-Refer to Scenario 19.2.BASF has decided to offer discounts to its businesses customers in the form of the following: For each order of $100,000 or more during the next 90 days,the buyer will receive a rebate of 5 percent.This type of pricing would be an example of ____ discounts.

• A) allowance
• B) cash
• C) seasonal
• D) noncumulative
• E) cumulative

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Definitions:

Kinked Demand Model

An economic model that suggests prices remain stable because firms in oligopoly markets may not adjust their prices in response to small shifts in demand or cost.

Demand Curve Shifts

Changes in the demand curve caused by factors other than the price of the good, leading to a new quantity demanded at every price.

Legislative History

The records and documents created during the process of a bill becoming a law, used to understand the intent behind legislative actions.

Committee Reports

Documents produced by committees (often within legislative bodies) summarizing their investigations, deliberations, and recommendations on specific matters.