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A Marketer of Yo-Yos Wants to Know How an Increase

question 67

Multiple Choice

A marketer of yo-yos wants to know how an increase in price will affect its sales. It uses a test store where it increases the price of the yo-yos by fifteen percent and then studies its impact on sales. Comparing its sales in the test store with those in other stores provides information about the likely impact of a price change in the overall market. Identify the type of market research method most likely used in this scenario.


Definitions:

Club Good

A type of good that is excludable but non-rivalrous, meaning those who do not pay cannot access it, but one person's use does not diminish availability for others.

Common Resource

A resource like air or water that is not owned by anyone, is available for everyone to use, and is rivalrous but non-excludable.

Pennsylvania Turnpike

A toll highway in Pennsylvania, significant for its role in transportation infrastructure in the United States.

Free Rider

A person who enjoys the advantages of goods, services, or resources without bearing the expenses associated with them.

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