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18 July, 09:57

A local drama club wants to increase the membership and attendance at its performances. To do so, it hosts free shows, starts poetry-reading nights, and sends volunteers to the local high school. What is the drama club engaging in?

A. Market research

B. Advertising

C. Market exchange

D. Product placement

E. Building customer relationships

Answers (1)
  1. 18 July, 10:49
    The drama club engaging in market exchange.


    The term market exchange refers to the act in which two or more people exchange good and services. In every exchange of goods or services an utility is produced. Utility refers to the difference in the value of the things that you involve in trading and the value of the thing that you have received as a result of trading.

    In the example given, the local drama club involves in hosting free shows, poetry reading nights and sending volunteers to the local high school. As a result of this, it gains an increase in memberships and attendance at its performance. Thus, the local dram club involves itself engaging in market exchange.
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