Which of the Following Statements Describes How Terrorism Influences Marketing

question 81

Multiple Choice

Which of the following statements describes how terrorism influences marketing activities?

• A) Concern about terrorism has caused consumers to spend more time at home.
• B) International shipping costs have increased as the result of terrorists' activities.
• C) Due to terrorism,the U.S.government has returned to its traditional role as guardians of the country's safety.
• D) Terrorism has a particularly profound effect on the tourism and airline industries.
• E) All of the above following statements describe how terrorism influences marketing activities.

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Definitions:

Demand Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater than one indicating a high response to price changes.

Revenue-Maximizing

The strategy of setting prices and production levels to achieve the highest possible revenue, not necessarily leading to the highest profit.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, opposite to normal goods.

Income Elasticity

A measure of how much the quantity demanded of a good responds to a change in consumers' income, holding all other factors constant.