Business, 06.11.2019 22:31, pettygirl13

Neutron inc., is one of the leading electric car manufacturers in northbay, a developing economy. neutron's sales increased by more than 20 percent this year compared to the previous year, which started a debate within the company about whether the firm should increase prices. among those in favor of a price hike is eric johnson, the operations head at neutron. eric is of the opinion that given the high demand for neutron's cars, the firm should increase price to improve profits. mike wilson, the ceo of the firm, however, feels that a price increase would adversely affect the demand for neutron's products because he thinks consumers in this industry are more price conscious than brand loyal. which of the following, if true, will support eric's view? a. northbay's aggregate imports decreased by 2 percent this year. b. the economy of northbay is expected to grow at a remarkable pace of 9 percent in the upcoming year. c. a recent market research report reveals that consumer confidence is low. d. the marginal propensity to consume is approximately 0.3 for an average household in northbay. e. the current rate of unemployment in northbay is high at 10 percent.

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Neutron inc., is one of the leading electric car manufacturers in northbay, a developing economy. ne...