Which of the Following Is True of Price Changes

question 69

Multiple Choice

Which of the following is true of price changes?

• A) Overdemand leads to companies initiating price cuts.
• B) Changes in price do not affect a brand's image.
• C) Customer reaction to price changes is not as important as competitor reaction.
• D) A drop in price can adversely affect how consumers view the brand.
• E) Excess capacity is a factor which causes increases in price.

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Definitions:

Lines of Authority

The formal structure within an organization that dictates who has control over decisions and who reports to whom.

Horizontal Specialization

The division of labor in an organization in which tasks are separated based on specific skills and functions, leading to departments or teams with specialized roles.

Vertical Hierarchy

An organizational structure where power and decision-making authority flow from the top down through various levels of management.

Division of Labor

Refers to the allocation of tasks among a set of individuals or groups within an organization, aimed at improving efficiency and productivity.