All of the Following Statements About Price Are True Except Which

question 84

Multiple Choice

All of the following statements about price are true except which?

• 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:

Price Elasticity

Measures the responsiveness of quantity demanded or supplied to a change in price.

Wealth

The abundance of valuable resources or valuable material possessions, including the total of all financial assets minus any liabilities.

Price Elasticity

A measure in economics that shows how the quantity demanded of a good or service responds to a change in its price.

Bushels

A unit of volume that is used primarily in the United States to measure agricultural produce, such as grains, fruits, and nuts.