Which of the Following Correctly Comments on the Following Statement

question 67

Multiple Choice

Which of the following correctly comments on the following statement? "The only way to increase the revenue from selling a product is to increase the product's price."

• A)It is not true. Revenue will increase as the price of the product increases only if demand is elastic.
• B)This statement is not true. Revenue will increase as the price of the product increases only if demand is inelastic.
• C)The statement is true.
• D)This statement is not true. Revenue will decrease as the price of the product increases because quantity demanded will fall.

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Definitions:

Cost-plus Pricing

A pricing strategy where a fixed percentage is added to the total cost of producing a product or service to determine its selling price.

Experience-curve Pricing

A pricing strategy that relies on reducing costs and setting prices based on gained efficiencies and experience over time.

Experience-curve Pricing

A pricing strategy that leverages reduced costs obtained through increased production experience to set lower prices aimed at gaining market share.

Penetration Pricing

A pricing strategy where a product is introduced to the market with an initial low price to attract customers and gain market share quickly.