The Inherent Goal of Product Differentiation Is to Make the Demand

question 30

Multiple Choice

The inherent goal of product differentiation is to make the demand curve for a product more inelastic. This happens because increased differentiation:

• A) reduces the number of perceived substitutes for a product.
• B) makes the product more expensive than its competitors.
• C) increases the quality of the product, making it worth the expense.
• D) reduces the time and effort required to obtain the product.
• E) increases the just noticeable differences among competing products.

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