Your retail outlet sells bottled water. Which of the following scenarios would cause you 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

In the scenario of a hurricane expected to arrive within one week, there may be an increase in demand for bottled water as people prepare for a potential disruption in water supply. This increase in demand creates an opportunity to buy low before the hurricane and sell high during or after the hurricane.

Your Retail Outlet Sells Bottled Water