How Can Setting the Price for Pickled Peppers Too High

question 14

Multiple Choice

How can setting the price for pickled peppers too high yield profits that are lower than the maximum?

• A) The high price will cause the convenience goods to become shopping goods.
• B) The high price will hurt the company's reputation, so the product will decline.
• C) The high price will generate a large profit per jar, but too few jars will be sold.
• D) Customers will insist on paying a lower price, resulting in less income.
• E) The high price will cause expenses to rise, reducing profits.

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Definitions:

World Price

The international market price of a good or service, influenced by factors like supply and demand, tariffs, and trade agreements.

Exporting Steel

The act of selling and shipping steel from one country to another, contributing to international trade.

Price Per Ton

A measure of how much a good costs per ton; commonly used in material and commodity markets.

Equilibrium Price

The equilibrium price where the number of items provided matches the number of items required.