Which of the Following Statements Regarding Price Changes Is Most

question 161

Multiple Choice

Which of the following statements regarding price changes is most accurate?

• A)Product prices should change monthly, whereas services prices should change quarterly.
• B)Changing a product's price too frequently creates antagonism among consumers, yet changing prices too infrequently makes them feel the company is not improving its product or service sufficiently.
• C)Supermarkets should change their prices every week since customers are expecting new prices in the weekly flyers they receive in the mail.
• D)Companies selling products over the Internet can instantly change their prices whenever the need arises.
• E)Internet price changes are regulated by the Internet Fair Practices Act to protect consumers against price gouging.

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Definitions:

Revenue

The total income generated from the sale of goods or services, before any costs or expenses are deducted.

Assets

Economic resources owned by a business or individual that are expected to bring future benefits.

Liabilities

Monetary liabilities or dues that a company or person has to pay back to lenders.

Equity

The value that would be returned to a company's shareholders if all of the assets were liquidated and all of the debts were paid off.