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Exhibit 16

question 76

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Exhibit 16.2.Typically,the sales volume declines with an increase of a product price.It has been observed,however,that for some luxury goods the sales volume may increase when the price increases.The following Excel output illustrates this rather unusual relationship. Exhibit 16.2.Typically,the sales volume declines with an increase of a product price.It has been observed,however,that for some luxury goods the sales volume may increase when the price increases.The following Excel output illustrates this rather unusual relationship.   Refer to Exhibit 16.2.What can be said about the linear relationship between Price and Sales? A) The relationship is negatively moderate. B) There is no relationship. C) The relationship is positively strong. D) The relationship is negatively strong. Refer to Exhibit 16.2.What can be said about the linear relationship between Price and Sales?


Definitions:

Common Share Price

The market value of a single share of a company's common stock, fluctuating based on buying and selling activities.

Rights-On Period

A designated timeframe during which shareholders have the right to purchase additional shares at a predetermined price before the offering is open to the public.

Subscription Price

The cost that a customer pays, often on a regular basis, to receive a product or service.

Common Share Price

The price at which a corporation's common shares are bought and sold on the stock market.

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