Jason,a High-School Student,mows Lawns for Families in His Neighbourhood

question 205

Multiple Choice

Jason,a high-school student,mows lawns for families in his neighbourhood.The going rate is $12 for each lawn-mowing service.Jason would like to charge $20 because he believes he has more experience mowing lawns than the many other teenagers who also offer the same service.If the market for lawn-mowing services is perfectly competitive,what would happen if Jason raised his price?

• A) He would lose some but not all his customers.
• B) Initially, his customers might complain but over time they would come to accept the new rate.
• C) He would lose all his customers.
• D) All others supplying the same service would also raise their prices.

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Definitions:

Existing Product

A product that is currently available in the market or has been previously introduced, as opposed to a new or upcoming product.

Frequency

A measure of how often the target market has been exposed to a promotional message during a specific time period.

Target Market

A specific group of consumers identified as the recipients of a particular marketing campaign or message, based on shared characteristics.

Graphic Display

The visual presentation of information and data through diagrams, charts, maps, and other graphical elements to facilitate understanding.