Which of the Following Is True of Price Changes

question 125

Multiple Choice

Which of the following is true of price changes?

• A) Over-demand 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 that causes increases in price.

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Definitions:

Complex Coordination

The integration of different functions and activities within an organism or system to achieve a common goal efficiently.

Thirst

An essential sensation prompting the need to drink fluids, triggered by the physiological mechanisms in response to dehydration or increased salt concentration in the blood.

Appetite

The natural desire to satisfy a bodily need, especially for food.

Hypothalamus

A region of the brain that regulates numerous bodily functions, including temperature, thirst, hunger, sleep, mood, and the release of hormones.