An Upscale Segment Is Always a Tempting One for Marketers

question 34

True/False

An upscale segment is always a tempting one for marketers to target because marketers assume that those customers can afford to purchase their goods or services, with a little less price sensitivity than other customers.

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Definitions:

Perfectly Inelastic

A market situation where the quantity demanded or supplied does not change in response to a change in price.

Deadweight Loss

The inefficiency caused in a market where all potential gains from trade are not realized due to factors like taxes or subsidies.

Per-Unit Tax

A tax imposed on a product on a per unit basis, raising the cost of production or sale for that product.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, reflecting the incremental rate applied to income in the highest tax bracket.