A retail outlet sells bottled water. Which scenario would cause them to use a "buy low and sell high" strategy with bottled water?
A) A hurricane is expected to arrive within one week.
B) A new producer for bottled water is expected to enter the market within the next three months.
C) Consumers are moving away from bottled water consumption to filtered tap water consumption.
D) Imports of bottled water begin to arrive in town.

Question

Quizplus · Accepted Answer

With a hurricane expected to arrive within one week, there will likely be an increase in demand for bottled water as people stock up on supplies. This would be an opportunity for the retail outlet to buy low (before the hurricane hits) and sell high (during the increased demand).

A Retail Outlet Sells Bottled Water