Which of the Following Statements Is a Characteristic of Leader

question 180

Multiple Choice

Which of the following statements is a characteristic of leader pricing?

• A) It seeks a big profit on the leader items.
• B) It is usually used for a retailer's major product line-to give it a competitive advantage.
• C) It is different from bait pricing in that the marketing manager really expects to sell leader priced items.
• D) It assumes that some part of the demand curve is upward sloping to the right.
• E) It is banned in interstate commerce.

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Definitions:

Supply Curve

The supply curve is a graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.

Price Elasticity

A gauge of how sensitively the demand or supply for a product reacts to alterations in its price.

Midpoint Method

A technique used to calculate the percentage change in a variable by dividing the change by the average value of the initial and final values.

Supply

The total amount of a product or service that is available for purchase at any given price level.