ENTREPRENEURIAL MARKETING
PRICING STRATEGIES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The buns you purchase for your hamburgers are a ____ cost.
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fixedv
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variable
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Demand for hamburgers rises when the price of a substitute good (such as hot dogs) rises. This is evident by the fact that buyers purchase substitute goods at a lower cost. When the price of one good rises, so does the demand for all the others.
Detailed explanation-2: -If the price of a substitute good (for example, hot dogs) increases, the demand for hamburgers will increase. If the price of a complement good (for example, hamburger buns) increases, the demand for hamburgers will decrease.
Detailed explanation-3: -For example, if the price of hot dogs increases, one will buy fewer hot dogs and therefore demand fewer hot dog buns, which are complements to hot dogs.
There is 1 question to complete.