Which of the Following Is NOT a Reason for a Company

question 107

Multiple Choice

Which of the following is NOT a reason for a company to initiate a price cut?

• A)to boost sales
• B)to obtain prestige
• C)to dominate the market
• D)to relieve excess capacity
• E)to influence falling demand

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Definitions:

Consumers' Income

The total amount of income available to consumers for spending and saving after income taxes have been accounted for.

Equilibrium Price

The market price where the supply of goods matches demand.

Equilibrium Quantity

The amount of goods or services supplied and demanded at the equilibrium price.

Bushels

A unit of volume that is used primarily in the United States to measure agricultural commodities, like grains and fruits.