Answer:
Incorrect Statement : When price elasticity of demand is very high, we say there is brand loyalty
Explanation:
Price elasticity of Demand is the responsiveness of quantity demanded to a change in price. That is, how much demand changes when there is a change in price. If demand changes significantly, it is price elastic (PED > 1), where the % change in price is lower than the % change in quantity demanded. On the other hand, if the change in demand is insignificant it is price inelastic (PED < 1), where the % change in price is higher than the % change in quantity demanded.
Brand loyalty is where consumers are likely to continue to purchase a product even with price changes and even if there are many other substitutes i.e. they are loyal to that brand. Hence, products with brand loyalty tend to be price INELASTIC, where even if the price is raised, it won’t impact demand as much since they still want to consume that product from that brand.
<span>The most practical way to avoid mismanagement of a checking account is D.create a budget and stick to it. </span>
Answer: Option A
Explanation: Sales promotion is the method of convincing a prospective consumer to buy the commodity. Sales promotion is intended to be used as a brief-term tool to boost sales – it is seldom appropriate as a way to develop long-term customer retention.
Giving discount, rebates and other such special offers are some of the many examples of sales promotion. In simple words,it is done to boost the sales for the current period.
In the given case, Amazon is also offering money saving offers to attract customers. Hence we can conclude that this is an example of sales promotion.
Answer:
B. The binding price floor will cause a surplus of wheat that farmers will be unable to sell.
Explanation:
A binding price floor is a minimum price that is above the equilibrium price.
Because the price is higher than equilibrium price, quantity supplied from farmers will be higher than quantity demanded from buyers, causing a surplus of wheat.
