Question

Luke owns a sports store that caters to outdoorsmen. He is contemplating greatly expanding the hunting and fishing equipment that he carries. If he does this, he expects his fishing and hunting sales will increase and his camping related sales will decrease. Which of the following anticipated results would be an erosion effect created by the expansion?

I. Increase in fishing and hunting sales
II. Increase in camping gear sales
III. Decrease in model train sales
a. I only
b. II only
c. I and III only
d. II and III only
e. I, II, and III

Answer 1

The erosion effect refers to a decrease in sales of certain products due to the expansion of other product lines.

Step-by-step explanation:

The erosion effect described in the question refers to a decrease in sales of certain products due to the expansion of other product lines. In this case, Luke expects an increase in fishing and hunting sales and a decrease in camping gear sales. The anticipated results would be a decrease in model train sales, which is III, and an increase in fishing and hunting sales, which is I. Therefore, the correct answer is c. I and III only.