Answer: Product Life cycle
Explanation: Product Life cycle is a concept used to describe the various stages which a product will have to undergo from the time of introduction into the market till the time it will eventually be out of the market. Different products have different life cycle,the life cycle is determined by different factors. The shape of a product's life cycle is that of a BELL SHAPE
The stages include Introductory stage, Growth stage, Stabilization stage and decline stage.
Answer:
Market segmentation
Explanation:
Market segmentation is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior.
The businesses use market segmentation to separate each market from another to study their demand closely. It helps them in catering to them according to their characteristics. They are able to treat every market according to its unique characteristics and generate more profit while doing that.
Answer: b. The put price decreases to $3.50
Explanation:
Put - Call Parity refers to the relationship that a certain European Put has with a European Call of the same underlying asset, strike price, and expiration date.
If Put - Call Clarity holds then the options and the calls should move together when Volatility changes all else being equal.
In the above scenario, the price of the call DROPPED by $0.5 to $2.50.
This means that the Put Price must DROP AS WELL by $0.5 to $3.50 to maintain the Parity.
Answer. C Binding price floor that creates a surplus
Explanation: A government imposed price of $12 in this market is an example of a binding price floor that creates a surplus as the government has fixed the price of the goods as $12 due to which the floor price is fixed and the surplus is created as the price is too high that the demand of the goods decreases. This intervention by the government is to create surplus by binding the floor price.
