Convenience items are often purchased routinely. If the brand the consumer usually buys is sold out, he does not go to another store, but rather buys another brand. Choose an alternative: True False

Assume that you are about to make a significant consumerpurchase, and the product is available at two local stores, one with high inventoryturnover and one with low. Which store would you choose based on this information?Why?

Explain how RPM can be used to increase retailer demand for inventories and thereby increase manufacturer profit. Explain whether profitable RPM can either increase or decrease welfare and how this depends on the variation in demand. Use diagrams and verbal explanation to explain your answer. Demonstrate the profit and welfare consequences of RPM by solving the 'RPM and Inventories Model' model done in class for the parameter value indicated below. RPM and Inventories Model Manufacturer MC = 0, Dealer MC = 0, Low and high demand are equally likely Low demand: qL = 1 - pL, High demand: qH = S(1 - pH) Parameter value: S = 4

A clothing retailer priced a shirt at $54.  New styles were coming in, so the price was reduced 25%. Two months later, as the season was coming to a close, the price was reduced an additional 30%.  Calculate the reduced price, after the second markdown.