If the Supply of a Product in a Market Is

question 42

Multiple Choice

If the supply of a product in a market is limited, a company may follow a ________ approach to maximize revenue and to match demand to supply.

• A) penetration
• B) psychological pricing
• C) variable-cost pricing
• D) predatory pricing
• E) price skimming

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Definitions:

Customer Niche

A focused, targetable portion of a market by which specific products or services are marketed to meet the unique demands of its audience.

Broader Market

Refers to a wide and diverse range of buyers and sellers in an extensive market beyond niche or specific industry segments.

Dollar General

A chain of variety stores in the United States known for selling items at low costs, often in rural and suburban areas.

Discount Stores

Retail outlets that sell products at prices lower than those asked by traditional retail stores, often through selling in bulk or reducing overhead costs.