Setting the Highest Initial Price That Customers Who Really Desire

question 135

Multiple Choice

Setting the highest initial price that customers who really desire the product are willing to pay when introducing a new or innovative product is referred to as

• A) a skimming strategy.
• B) a penetration strategy.
• C) a price-lining strategy.
• D) an experience-curve pricing strategy.
• E) a prestige pricing strategy.

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Definitions:

Tax Revenue

The money collected by a government from its citizens and businesses through various forms of taxation.

Property Tax

A levy on property that the owner is required to pay, often based on the value of the property.

Excess Burden

The cost to society created by market inefficiency, often associated with government policies like taxes or subsidies.

Tax Shifting

The process by which the economic burden of a tax is passed on from the entity legally responsible for it to another party, often consumers.