A Market Penetration Strategy Should Be Used When Consumer Price

question 22

Multiple Choice

A market penetration strategy should be used when consumer price elasticity of demand is ________.

• A) negative
• B) inelastic
• C) elastic
• D) unitary

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Definitions:

Market Entry

The strategy or process of introducing new products or services into an existing or new market.

Market Failures

Situations where markets do not allocate resources efficiently on their own, leading to a loss of economic welfare.

Government Role

The activities undertaken by a government to regulate and administer economic, social, and political affairs.

Market System

An economic system in which decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.