Sales of national brands of orange juice tend to increase when the economy is doing well, while sales of generic orange juice increase when the economy is not doing well. This is an example of how _______ impacts demand for products.

Sales of national brands of orange juice tend to increase when the economy is doing well, while sales of generic orange juice increase when the economy is not doing well. This is an example of how _______ impacts demand for products. 



A. dynamic pricing

B. the price inelasticity coefficient

C. the income effect

D. the target return effect

E. cross-price elasticity


Answer: C. the income effect


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