Kendra always buys and uses Wilson brand tennis balls. If she finds a Penn or Dunlop ball on the court, she gives it away. Brand-loyal tennis players like Kendra allow Wilson to charge a higher price and not lose many sales. By building a strong brand, Wilson has effectively
A) increased the income effect for its products.
B) increased the cross-price elasticity for its products.
C) focused on the competitive parity point for its products.
D) shifted the golf ball market from a monopoly to pure competition.
E) reduced the price elasticity of demand for its products.
Correct Answer:
Verified
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