What Does the Demand Curve for a Prestige Product Look

question 143

Multiple Choice

What does the demand curve for a prestige product look like?

• A) It is a straight line where the quantity sold continues to increase as the price of each product increases.
• B) It is a curve where the highest and the lowest prices yield the greatest quantity sold and mid-range prices produce the fewest sales.
• C) It forms a curve where the greatest quantity sold comes at a medium price, and the quantities fall as the price increases or decreases.
• D) It forms a straight vertical line because of the prestige of the product, and quantity sold will remain stable regardless of the price.
• E) It slopes from left to right at a very mild slope; that is, as quantity increases, price decreases slowly.

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Definitions:

Discrimination

Involves unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Production Possibilities Curve

A graphical representation that shows the maximum quantity of two products that a country can produce using its resources efficiently.

Elimination

The process of removing or excluding something or someone from consideration or from a particular set or group.

Domestic Output

The aggregate value of every product and service created within the confines of a nation during a specific period.