The Inherent Goal of Product Differentiation Is to Make the Demand

question 30

Multiple Choice

The inherent goal of product differentiation is to make the demand curve for a product more inelastic. This happens because increased differentiation:

• A) reduces the number of perceived substitutes for a product.
• B) makes the product more expensive than its competitors.
• C) increases the quality of the product, making it worth the expense.
• D) reduces the time and effort required to obtain the product.
• E) increases the just noticeable differences among competing products.

---

Definitions:

Dark Room

A dimly lit or unlit room, often used for processing photographic materials, where light-sensitive materials are not exposed to light.

Rods and Cones

Photoreceptor cells in the retina of the eye responsible for vision. Rods are sensitive to low light levels, while cones support color vision and detail in well-lit conditions.

Retina

A layer of cells at the back of the eye that senses light and sends visual signals to the brain for processing.

Phenomena

Observable events or occurrences that are notable for their distinctive features, especially those which are scientifically interesting or challenging to explain.