1. A Swiss watch company advertises its history of superior craftsmanship. The c
ID: 1217599 • Letter: 1
Question
1. A Swiss watch company advertises its history of superior craftsmanship. The company thinks that this will
a. Make the demand for the product more elastic
b. Make the customers more sensitive to the price
c. Not impact the demand for their product
d. None of the above
2. The general rule to increase profits when two close complementary brands are jointly owned is
a.
Increase prices for both brands
b.
Decrease prices for both brands
c.
Increase prices on one brand, decreasing it for the other
d.
Increase prices on one brand, keeping the prices of the second brand constant
a.
Increase prices for both brands
b.
Decrease prices for both brands
c.
Increase prices on one brand, decreasing it for the other
d.
Increase prices on one brand, keeping the prices of the second brand constant
Explanation / Answer
Ans. 1 NONE OF THE ABOVE
(Because it will make demand less elastic, makes the customer less sensitive to its price, all the options are wrong)
Ans 2. Option A
(Beacuse both goods are complements, Consumer has to purchase/consume both goods simultaneously. Thus, if they both increases the price of their product under agreement, then both will get benefit in the form of higher profits.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.