In Which of These Instances Does Price Function as a Signal

question 43

Multiple Choice

In which of these instances does price function as a signal in the market?

• A) Suppliers invest more in exploration when the price of oil increases.
• B) Consumers complain of price gouging as the price of oil skyrockets.
• C) Government imposes price controls on the skyrocketing price of oil.
• D) Consumers increase buying when the price of oil increases.

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Definitions:

Buying Center

A group of individuals within an organization who are involved in the decision-making process for purchasing products or services.

Decision Maker

An individual or group responsible for making choices or judgments in the context of purchasing or strategic planning.

Modified Rebuy

Refers to when the buyer has purchased a similar product in the past but has decided to change some specifications, such as the desired price, quality level, customer service level, options, or so forth.

Walmart Buyers

Professionals responsible for selecting and procuring goods for sale in Walmart, ensuring a match with consumer preferences and demand.