What Type of Pricing Is Being Used When a Company

question 98

Multiple Choice

What type of pricing is being used when a company temporarily prices its products below the list price to create buying excitement and urgency?

• A) segmented pricing
• B) psychological pricing
• C) geographical pricing
• D) promotional pricing
• E) dynamic pricing

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Definitions:

Imports

Goods and services purchased from other countries for domestic consumption, often contrasted with exports.

Reaction Function

In economics, it represents how one economic agent's decision changes in response to another's action, especially in competitive markets or games.

Demand Function

A mathematical representation showing the relationship between the quantity demanded of a good and its price, along with other determinants.

Marginal Cost

Additional cost incurred by increasing product or service production by one unit, emphasizing the concept of incremental expenditure.