If commercial real estate costs of Kroger affect demand for Kroger Milk through the product prices Kroger charges to its customers, this is an example of what type of relationship?
A) A direct causal effect of real estate costs on product demand
B) An indirect causal effect of product prices on product demand
C) An indirect causal effect of product demand on product prices
D) An indirect causal effect of real estate costs on product demand

Question

Quizplus · Accepted Answer

Commercial real estate costs are not directly related to the demand for Kroger Milk, but they indirectly affect it through the prices Kroger charges for the product, which may be influenced by real estate costs. Therefore, this is an example of an indirect causal effect of real estate costs on product demand.

If Commercial Real Estate Costs of Kroger Affect Demand for Kroger