High quality h2o has developed a water purification device that is very different and more innovative when compared to any product currently on the market. although consumer response was positive to the idea of the new product, the company wants to find out more before committing to full-scale production. the next step high quality h2o's marketing department is likely to take is to:
a) locate a low-cost production site.
b) seek a joint venture with a larger company.
c) test market the product with potential users.
d) develop an advertising campaign to convince customers of the value of the new system.
the answers are
savings accounts become less desirable because interest earned is lower than inflation
individual purchasing power increases, which results in an increase in demand.
if the price is expected to rise, current demand will fall. current demand is not related to future price. the demand is inelastic at a low price but becomes elastic as the price rises. the percentage change in quantity demanded is exactly equal to the percentage change in price.