A Price Change Would Have the Smallest Income Effect on a

question 130

Multiple Choice

A price change would have the smallest income effect on a

• A) pack of chewing gum.
• B) bicycle.
• C) pair of shoes.
• D) pickup truck.

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Definitions:

Prestige Pricing

A pricing strategy where prices are set higher than normal because the product or service is perceived to be more prestigious or luxurious.

Odd Pricing

A pricing strategy where goods are priced slightly below a round number, such as $1.99 instead of $2.00, to make the price seem lower to consumers.

Advertising

The act of promoting products, services, or brands through various media channels to attract and inform potential customers.

Personal Selling

A direct marketing approach where salespeople use personal interaction to persuade potential customers to buy a product or service.