Which of the Following Is NOT a Risk Associated with the Use

question 31

Multiple Choice

Which of the following is NOT a risk associated with the use of price differentiation to smooth demand?

• A) Customers paying higher prices may feel they are being treated unfairly
• B) Attracting undesired market segments
• C) Increased capacity utilization
• D) Customers becoming accustomed to low price
• E) The potential impact on the organization's image

---

Definitions:

Barter

An exchange system where goods and services are traded directly without the use of money as a medium.

Adam Smith

was an 18th-century Scottish economist and philosopher, best known for his works on the principles of free market economies.

Scottish Professor

Refers to academics from Scotland, particularly notable in areas such as philosophy, economics, and history, though not a specific individual or designation.

Invisible Hand

A term coined by Adam Smith to describe the self-regulating nature of the marketplace, where individuals' pursuit of their own interest leads to economic benefits for society as a whole.