An Increase in the Equilibrium Price and a Decrease in the Equilibrium

question 208

Multiple Choice

An increase in the equilibrium price and a decrease in the equilibrium quantity can be the result of

• A) a decrease in demand.
• B) an increase in supply.
• C) a decrease in supply.
• D) an increase in demand.
• E) None of the above is correct.

Recognize the strategic decisions involved in product and brand management.

Understand the concept and benefits of brand loyalty.

Identify who can own brands and the types of brands in the market.

Recognize the strategic role of advertising in building brand awareness.

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Definitions:

Merchandising Companies

Businesses that purchase goods in finished form for the purpose of reselling them to customers without further processing.

Resale

Resale refers to the process of selling a previously purchased product, generally used or surplus items, to another buyer.

Financial Accounting

The branch of accounting that is concerned with recording transactions using generally accepted accounting principles (GAAP) for a business or other economic unit and with a periodic preparation of various statements from such records.

Business

An organization in which basic resources (inputs), such as materials and labor, are assembled and processed to provide goods or services (outputs) to customers.