Which of the Following Represents a Pricing Strategy That Establishes

question 36

Multiple Choice

Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors?

• A) discounting strategy.
• B) Odd pricing strategy.
• C) Skimming strategy.
• D) Price lining strategy.
• E) Psychological pricing strategy.

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Definitions:

Limited Resources

The finite availability of inputs such as labor, materials, and capital, which restricts production capabilities and economic growth.

Unlimited Wants

The concept in economics that human desires for goods and services exceed the available resources, leading to perpetual states of decision making and prioritization.

Economizing Behavior

The tendency of individuals or organizations to attempt to minimize costs or expenses and maximize value.

Scarce Resources

Limited natural resources that are not abundant enough to satisfy all the wants and needs of a population.