All of the Following Are True,except​

question 60

Multiple Choice

All of the following are true,except​

• A)​Some consumers may infer high quality from high price
• B)Low prices can indicate lower quality given that no other information is available
• C)Promotional campaigns do not affect consumer's perception on quality
• D)​It makes more sense to raise price when advertising makes demand less elastic

---

Definitions:

Common Shares

Equity securities that represent ownership in a company, providing voting rights and potential dividends to shareholders.

Net Income

Net income is the total profit of a company after all expenses and taxes have been deducted from revenue, indicating the company's financial performance over a specific period.

Retained Earnings

The portion of net income that is not distributed to shareholders but is kept by the company to reinvest in its core business or to pay debt.

Net Income

The sum a company holds onto after subtracting expenses and taxes from the total revenue earned.