Which of the Following Is an Example of a Demographic

question 64

Multiple Choice

Which of the following is an example of a demographic factor that would be particularly relevant to the pricing decisions made by a company that sells insurance?

• A) The number of potential buyers.
• B) The types of insurance the company sells.
• C) The fact that potential buyers use price as an indicator of product quality.
• D) The prestige orientation of potential buyers.

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Definitions:

Marginal Costs

The cost incurred by producing one additional unit of a product or service.

Economic Returns

The financial gains or profits achieved from an investment or business operation.

Tragedy Of The Commons

A situation in which individual users, acting independently according to their own self-interest, deplete or spoil shared resources, even though it is not in anyone's long-term interest for this to happen.

Equator

An imaginary line around the Earth's surface located equidistant from the North and South Poles, dividing the Earth into the Northern and Southern Hemispheres.