Which of the Following Should Be True for a Skimming

question 118

Multiple Choice

Which of the following should be true for a skimming price to be successful?

• A) Target consumers should be price sensitive.
• B) Supply should exceed demand.
• C) Demand must be stabilizing.
• D) The producer should use intensive distribution.
• E) There should be little chance that competitors can quickly enter the market.

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Definitions:

Tariff

A tax imposed on imported goods and services, aimed to make imported goods more expensive and thus less competitive compared to domestic goods.

Imported Rice

Rice that is produced in one country and then shipped and sold in another country, often to meet demand that cannot be met by domestic production.

Tax Increases

Government-imposed hikes in taxes, which can affect consumer spending, investment decisions, and overall economic growth.

Industrial Production

The total output of the industrial sector, including manufacturing, mining, and utilities, within an economy.