A company has designed a reusable plastic water bottle. The bottle is white in color and opaque due to an added chemical called titanium dioxide. The bottle will be offered for $19.95 because marketing analysis showed that many people would be willing to pay up to $20 for the bottle, but few would purchase the bottle at a higher price.If cost for titanium dioxide rises between the design and production stages, the bottle company would most likely respond to this shortage of raw materials by A. adding more titanium dioxide to each bottle. B. finding ways of reducing carbon dioxide emissions. C. making the bottles slightly smaller. D. raising the price of each bottle.
Question
A company has designed a reusable plastic water bottle. The bottle is white in color and opaque due to an added chemical called titanium dioxide. The bottle will be offered for 20 for the bottle, but few would purchase the bottle at a higher price.If cost for titanium dioxide rises between the design and production stages, the bottle company would most likely respond to this shortage of raw materials by A. adding more titanium dioxide to each bottle. B. finding ways of reducing carbon dioxide emissions. C. making the bottles slightly smaller. D. raising the price of each bottle.
Solution
The most likely response from the company to a rise in the cost of titanium dioxide would be C. making the bottles slightly smaller. This is because the text mentions that marketing analysis showed that few people would purchase the bottle at a higher price than $20. Therefore, option D. raising the price of each bottle is less likely. Option A. adding more titanium dioxide to each bottle would only increase the cost further. Option B. finding ways of reducing carbon dioxide emissions is unrelated to the problem of increased cost of titanium dioxide. By making the bottles slightly smaller, the company could potentially use less titanium dioxide per bottle, thus reducing the cost.
Similar Questions
Recycling of plastic bottles leads toa.Resource depletionb.Habit erosionc.Industrial wasted.Reduced ocean waste
Plastic pollution is a consistent problem in the world's oceans. We can do our part to help by ___________ down the use of plastic bags and bottles, straws, and avoiding items with plastic packaging.
Recycling of plastic bottles leads toa.Industrial wasteb.Habit erosionc.Resource depletiond.Reduced ocean waste
Recycling of plastic bottles leads toa.Reduced ocean wasteb.Industrial wastec.Resource depletiond.Habit erosion
How would the equilibrium quantity of bottled water be affected if the price of plastic used to make bottles for bottled water decreased at the same time that the price of soft drinks decreased tremendously?A.The change would be indeterminate.B.It would decrease.C.There would be no change.D.It would increase.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.