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Tom [10]
3 years ago
8

Cliff is struggling with the price of produce at his well-established produce markets. The reputation of the markets attracts re

peat customers from a 50-mile radius. Recently, local farmers started increasing produce prices for him due to the upsurge in gas prices. Now, Cliff feels it is time to pass the costs onto his customers. Which of the following should Cliff estimate to determine the effect of price changes?
a. Price elasticityb. Break-even point quantityc. Fixed costsd. Reference price
Business
1 answer:
faust18 [17]3 years ago
7 0

Answer:

A. price elasticity

Explanation:

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The franchise agreement can simply be described as a legal agreement for binding of two or more companies. The agreement carries all the terms and conditions under which the two companies will work together. In such a kind of agreement, the owner of a business gives the rights of using the company name to another person or another company. The other company also gets the rights to sell products under the name of that company. In return, they agree to pay a commission or a part of their revenue as franchise fees.

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