All of These Statements About Price Are True Exceptwhich

question 161

Multiple Choice

All of these statements about price are true exceptwhich?

• A) Small changes in price can have big effects on both the number of units sold and company profit.
• B) The price for a product or service must earn a profit for the company.
• C) For most products and services, there is an agreed-upon price range set by makers.
• D) The price must be "right"-in the sense that customers must be willing to pay it.
• E) The price must generate enough sales dollars to pay for the cost of developing, producing, and marketing the product.

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Definitions:

Law of Demand

An economic principle stating that as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa, holding all else constant.

Prices

The amount of money required to purchase goods or services, typically set by supply and demand dynamics in the market.

Scarce Resources

Refers to the limited availability of resources that are used for the production of goods and services.

Classified Ads

Short advertisements placed in a bulletin, newspaper, or online platform, categorized by the type of product, service, or job offered.