Which of the Following Is True of Product Line Pricing

question 57

Multiple Choice

Which of the following is true of product line pricing?

• A)As a business adds more products to its product line,it decreases the risk of cannibalizing existing product sales.
• B)Adding more products to a business's product line enhances sales growth.
• C)Products that have a negative cross-price elasticity are substitutes.
• D)It is not necessary to know the degree to which a product has cross-price elasticity with other products.
• E)Products that have a positive cross-price elasticity are complementary products.

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Definitions:

Situation Analysis

The assessment of internal and external factors affecting an organization's performance to identify strengths, weaknesses, opportunities, and threats.

Key Message

Theme or idea in a strategic plan that is specially designed to communicate an essential point or view that is critical to accomplishing an overall objective.

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Corporate Social Responsibility

A business model in which companies integrate social and environmental concerns in their business operations and interactions with stakeholders.