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.

---

Definitions:

Receptor-Mediated Endocytosis

A process by which cells internalize molecules (e.g., hormones, nutrients) by the inward budding of plasma membrane vesicles containing proteins with receptor sites specific to the molecules being internalized.

Exhibits Specificity

Describes the quality of being precise or particular in the interaction, such as the way enzymes selectively bind to specific substrates.

ATP

Adenosine triphosphate, the principal molecule for storing and transferring energy in cells.

Carrier Molecule

A molecule that facilitates the transport of another molecule across a cell membrane, often requiring energy.