Question 1

A decline in the availability of bicycle handle bars will decrease Huffy Bicycle Company's production of bicycles. Decreased production in turn reduces Huffy's demand for bicycle seats. Which type of demand do the products in this situation have?

Accepted Answer

The products in this situation have joint demand since the availability of one product (bicycle handle bars) affects the production and demand for another product (bicycle seats).

Question 2

During the first years of this century, the number of packages arriving at households has more than doubled. An increase in the price of the cardboard boxes in which these packages are shipped will have little effect on the amount of shipping done; the demand for the boxes will continue to increase. What type of demand is the demand for the cardboard boxes?

Accepted Answer

The demand for cardboard boxes in this scenario is inelastic, meaning that a change in price will have little effect on the quantity demanded. This is because the demand for the boxes is derived from the increase in packages being shipped, which is not affected by the price of the boxes.

Question 3

Inland Eastex manufactures a heavy paper stock that is used for printing covers for many different consumer magazines. Consumer magazine sales determine how much paper Inland Eastex sells. This is an example of which type of demand?

Accepted Answer

The scenario described here is an example of derived demand, which refers to the demand for a product or service that results from the demand for another product or service. In this case, the demand for Inland Eastex's heavy paper stock is derived from the demand for consumer magazines, which use the paper for their covers.

Question 4

Bàbolina Tetra is a Hungarian company that has genetically created a chicken that is guaranteed to produce uniform brown eggs with strong shells. It breeds and sells young chicks to farmers all over Europe who want to sell eggs in local markets. When consumers began to worry about cholesterol content and stopped eating as many eggs, the demand for the Bàbolina Tetra hen also declined. Which type of demand is this an example of?

Accepted Answer

Derived demand occurs when the demand for one product or service happens as a result of the demand for another. In this case, the demand for Bàbolina Tetra's hens is directly tied to the demand for eggs. When consumer demand for eggs decreased due to cholesterol concerns, the demand for the hens that produce these eggs also decreased.

Question 5

Which Canadian network brings together leading Canadian researchers and national youth-serving organizations?

Accepted Answer

PREVNet is a network of leading Canadian researchers and national youth-serving organizations that work together to prevent bullying and promote healthy relationships among children and youth.

Question 6

Nutrimax Cookies Inc. buys around three tons of raw materials every year. If the demand for its cookies increases next year, the company might need to buy more raw materials to meet the demand. What does this example illustrate?

Accepted Answer

The answer of Nutrimax Cookies Inc. buys around three tons...

Question 7

What does guanxi loosely mean?

Accepted Answer

Guanxi is a Chinese term that refers to the network of relationships and connections that facilitate business and social interactions.

Question 8

Fresnas Inc., an oil refinery, buys crude oil and converts it into various products such as gasoline, kerosene, and diesel fuel. Fresnas Inc., then, sells these products to other companies or retailers. Based on this information, which segment of the business market is most likely represented by Fresnas Inc.?

Accepted Answer

Fresnas Inc. buys crude oil and converts it into various products, which makes it a producer in the business market.

Question 9

An acute shortage of heavy-duty tires is threatening to disrupt operations in mining and construction sites around the world. According to one mine operator, "I've got the coal and market, and I have the trucks to haul the coal, but I don't have the tires. I'd be willing to pay double the price if I could get the tires I need." What type of demand is the demand for heavy-duty tires in this example?

Accepted Answer

The demand for heavy-duty tires in this example is inelastic because the mine operator is willing to pay double the price to get the tires they need, indicating that the demand is not very sensitive to changes in price.

Question 10

Although the price of a chemical added to paint to protect surfaces from mould and mildew has almost doubled, the price of paint only rose an average of 5 percent, and the demand for both paint and the chemical that eliminates mould and mildew remained stable. What is the demand for this chemical?

Accepted Answer

The fact that the price of the chemical has almost doubled but the demand for it remained stable suggests that the demand for the chemical is inelastic, meaning that consumers are willing to pay a higher price for the chemical despite the price increase.

Question 11

The number of companies ordering airplanes from Boeing has dropped. After some research, Boeing found out that the number of consumers flying had also dropped. What type of demand was this a result of?

Accepted Answer

The decrease in demand for Boeing airplanes is a result of derived demand, as the demand for airplanes is derived from the demand for air travel by consumers.

Question 12

The demand for polyethylene film used to wrap meat in supermarkets is dependent on consumers' demand for meat. This is an example of which type of demand?

Accepted Answer

Derived demand refers to the demand for a good or service that is derived from the demand for another good or service. In this case, the demand for polyethylene film is derived from the demand for meat, as the film is used to wrap the meat. Therefore, the answer is B.

Question 13

Why did the Canadian government create Networks of Centres of Excellence?

Accepted Answer

The Canadian government created Networks of Centres of Excellence to bring together government and industry funding to support collaborations between researchers and industry partners in order to promote innovation and economic growth.

Question 14

When two or more items are used in combination to produce a final product, which type of demand are they said to have?

Accepted Answer

Joint demand refers to the demand for two or more items that are used together to produce a final product. For example, the demand for gasoline and cars is joint demand because they are both necessary to produce the final product of a functioning car.

Question 15

What is a keiretsu?

Accepted Answer

A keiretsu is a type of strategic alliance commonly found in Japan, where a group of companies are interlinked by cross-shareholdings, and/or with each other's operations. This is not related to e-commerce or language access, and is not illegal in Canada.

Question 16

Challenger Inc. manufactures toothpastes. Even when the company increased the price of its toothpastes last year, the sales did not drop. What is this an example of?

Accepted Answer

This is an example of inelastic demand as the increase in price did not have a significant effect on the sales. If the demand was elastic, a price increase would have led to a drop in sales.

Question 17

When an increase or decrease in the price of the product will not significantly affect demand for the product, what is the demand for the product?

Accepted Answer

Inelastic demand refers to a situation where a change in the price of a product does not significantly affect the demand for the product. This means that consumers are not particularly sensitive to changes in price, and may continue to purchase the same amount of the product regardless of price fluctuations. This is often the case for products that are deemed essential or necessary, such as gasoline or prescription medications.

Question 18

What is the best definition of the network approach?

Accepted Answer

The network approach involves understanding external forces that have an impact on businesses, such as market trends, competition, and regulatory changes. It is a strategic approach to building and maintaining relationships with stakeholders, including customers, suppliers, partners, and industry influencers. It involves working collaboratively to achieve shared goals and create value for all parties involved.

Question 19

What is the best definition of the marketing management approach?

Accepted Answer

The marketing management approach involves understanding that the customer has the same needs and tailoring marketing efforts to meet those needs. It is about creating a customer-centric strategy rather than just focusing on sales or lead generation, and using persuasion techniques to influence customer behavior.

Question 20

When the demand for packaged beer fell by 8 percent in one year, the demand for aluminum beer cans and glass beer bottles also fell. This demand for beer containers is an example of which type of demand?

Accepted Answer

The demand for beer containers is an example of derived demand, which is the demand for a good or service that arises from the demand for another good or service. In this case, the demand for beer drives the demand for beer containers, whether they be aluminum cans or glass bottles. The fact that the demand for the containers fell along with the demand for beer suggests that the demand is derived instead of fluctuating, inelastic, or elastic.

Quiz 7: Business Marketing