K.H. Interiors found a supplier of inexpensive materials tha…

K.H. Interiors found a supplier of inexpensive materials that could be used to produce low-grade vinyl flooring at a low cost. Because K.H. Interiors had been facing stiff competition in the medium-grade vinyl flooring industry, it started using the new material in all of its vinyl flooring and reducing its prices. This is an example of which of the following?

The Ritz-Carlton New York, Central Park drops the price of a…

The Ritz-Carlton New York, Central Park drops the price of a suite from $935 to $799 per night and experiences a reduction in the number of rooms booked by an average of five rooms per night. This is an indication that suites at this hotel are apparently an example of what kind of product?