Procter & Gamble dropped the price of Pringle Potato Chips in the Southeast due to price competition and consumer demand.As a result of the price reduction,Procter & Gamble increased unit sales and earnings by 10 percent due to:
A) price-wars with other snack food makers
B) increases in both supply and demand
C) elasticity of demand
D) price demand determinants
E) market share fluctuations

Question

Quizplus · Accepted Answer

The increase in unit sales and earnings can be attributed to the concept of elasticity of demand, meaning that as price decreases, demand increases. This resulted in consumers buying more Pringle Potato Chips, leading to an increase in unit sales and earnings for Procter & Gamble. There is no mention of price-wars, supply and demand increases, price demand determinants, or market share fluctuations in the given information.

Procter & Gamble Dropped the Price of Pringle Potato Chips