AgriGrow, Inc

question 124

Multiple Choice

AgriGrow, Inc. is an agricultural research firm that develops and markets seeds for fast-growth crops. This product-market is in the growth stage of the product life cycle--and sales depend not only on the right marketing mix but also on a variety of other concerns such as competitors' new products, the weather, and ever-changing Federal farm subsidy programs. The AgriGrow marketing manager wants to develop a sales forecast, and in this situation

• A) trend extension approaches are likely to yield the most accurate forecast.
• B) NAICS codes can be used as factors.
• C) the Survey of Buying Power (and the buying power index) should work well.
• D) a jury of executive opinion is probably the best bet.
• E) none of these is a good answer.

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Definitions:

Burden Of The Tax

The impact of a tax on the economic welfare of individuals, showing who ultimately bears the cost of the tax.

Excise Tax

A direct tax placed on manufactured goods, and is often levied at the time of manufacture, rather than at sale.

Inelastic Supply

A market condition where the quantity supplied of a good does not change significantly when its price changes.

Inelastic Demand

The case in which the price elasticity of demand is less than 1.