After acquiring closely substitutable product brands, a firm can successfully raise prices on both of the brands without losing much of its total sales because
a. Customers are insensitive to price changes
b. None of these sales would be captured by its other brand
c. Some of these sales lost by one brand would be captured by the other
d. All of the above
c
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Which one of the following could not have helped contribute to the recession of 1990– 1991?
a. less spending by state and local governments b. lower military spending by the federal government c. high levels of consumer debt d. lower tax rates e. expectations by consumers that the economy was in a downturn
You have just bought a used car, and drive away satisfied that you've made a good deal on the purchase. What would an economist say about your "gain" on the deal?
a. Your gain has clearly meant that the seller lost on the deal. b. The seller has clearly gained, and you have actually lost on the deal. c. Both you and the seller have gained something. d. If your gain is too large, then the deal should be re-negotiated. e. If the seller's loss is too large, then the deal should be re-negotiated.