A Theory Asserts That Manufacturers Are Less Willing to Sell

question 33

Multiple Choice

A theory asserts that manufacturers are less willing to sell units of output as the price of a good decreases.However, as the price of computers fell throughout the 1990s, more computers were sold.Which of the following best explains the apparent conflict between theory and data?

• A)The theory must be invalid.
• B)The theory rests on assumptions that are too simplistic.
• C)It is likely that variables other than the price and quantity of computers sold were changing.
• D)All variables other than the price and quantity of computers sold were unchanged.

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Definitions:

Promotion

A marketing tactic that involves raising awareness of a brand, product, or service to increase sales or public visibility through various channels.

Availability

The degree to which a product, service, or resource is obtainable or accessible when needed.

Awareness

The degree to which consumers know about a brand, product, or service, recognizing its existence and features.

Unsought

Refers to products that consumers do not typically think about buying or do not know exists until they see them.