If the Demand for a Particular Farm Product Is Inelastic

question 134

Multiple Choice

If the demand for a particular farm product is inelastic between price P₁ and P₂ (where P₂ > P₁) ,farmers as a group would want to sell their product at the

• A)higher price,but an individual farmer would rather sell his product at the lower price.
• B)higher price,and an individual farmer would rather sell his product at the higher price,too.
• C)lower price,but an individual farmer would rather sell his product at the higher price.
• D)lower price,and an individual farmer would rather sell his product at the lower price,too.

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Definitions:

Demand-Oriented

A pricing strategy where price is set based on the customer's demand for the product or service.

Profit-Oriented

A business approach or strategy primarily focused on generating financial gain and maximizing profit margins.

Target Pricing

A pricing strategy where the selling price is determined based on the estimated price a consumer is willing to pay, rather than on the cost of production or the market average.

Prestige Pricing

A pricing strategy where goods are priced higher than normal to invoke perceptions of quality and exclusivity, aimed at attracting status-conscious consumers.