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:

Pleasure Principle

A psychoanalytic concept that suggests the driving force of behavior is the desire to maximize pleasure and avoid pain, guiding the id aspect of personality.

Id

In psychoanalytic theory, the part of the mind in which innate instinctive impulses and primary processes are manifest.

Schema

A cognitive framework or concept that organizes and interprets information in the brain, influencing perception and understanding.

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, the superego, and reality. It's involved in our sense of personal identity and our conscious decision-making.