Answer the Following Question(s)using the Information Below

question 187

Multiple Choice

Answer the following question(s) using the information below.Jim's 5-year-old Geo Prizm requires repairs estimated at $3,000 to make it road worthy again.His friend, Julie, suggested that he should buy a 5-year-old used Honda Civic instead for $3,000 cash.Julie estimated the following costs for the two cars:

-What should Jim do? What are his savings in the first year?

• A)Buy the Honda Civic; $15,080
• B)Fix the Geo Prizm; $2,820
• C)Buy the Honda Civic; $180
• D)Fix the Geo Prizm; $5,280
• E)Buy the Honda Civic; $80

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Definitions:

Demand-oriented

A pricing strategy where prices are set based on the perceived value to the customer or demand for the product, rather than on the cost of the product or market competition.

Pricing Approach

Strategies and methodologies used by companies to set the selling price of their products or services, taking into account costs, market demand, competition, and profit margins.

Price-setting Process

The method by which a company determines the selling price of its products or services, considering costs, demand, competition, and profitability.

Pricing Strategies

Plans or methods employed by businesses to set, adjust, and present the prices of their products effectively to enhance sales and profitability.