The Demand Curve for Which Type of Pricing Method Slopes

question 268

Multiple Choice

The demand curve for which type of pricing method slopes downward and to the right,then turns back to the left?

• A)skimming pricing
• B)penetration pricing
• C)price lining
• D)prestige pricing

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Definitions:

Sensitivity Analysis

A financial modeling technique that determines how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Break-Even Point

The point at which total costs and total revenues are equal, meaning the business is not making a profit or loss, a crucial figure for financial planning and management.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating a company’s fixed versus variable costs.

Variable Costs

Charges that adjust in direct proportion to the manufacturing output or the quantity of sales.