Which of the Following Can Be the Overall Effect When

question 83

Multiple Choice

Which of the following can be the overall effect when a good or service is priced higher than competitors?

• A) There will be an implication of higher quality standards.
• B) There will be greater demand for the product.
• C) Sales will start slow, but increase over time.
• D) There will be a larger market size, but smaller profit.
• E) There will be a smaller market and smaller profit.

---

Definitions:

Market Index

A statistical measure that tracks the performance of a specific basket of stocks representing a particular market or sector.

Arbitrage Opportunity

The chance to buy an asset at a low price in one market and simultaneously sell it at a higher price in another market to make a risk-free profit.

Zero-Investment Portfolio

A portfolio strategy that involves creating a position without the need for initial capital by taking both long and short positions in stocks or other securities.

Net Investment

The total amount spent by a company on capital assets, such as plants and machinery, minus depreciation.