A Local Eye Doctor Is Seeking to Expand Its Practice

question 170

Multiple Choice

A local eye doctor is seeking to expand its practice and entice new customers to visit for their annual eye exam and purchase glasses or contacts if prescribed.The office is offering 2 pairs of glasses for $69 with the goal of attracting a large number of new patients.What type of pricing objective is utilized by the office?​

• A)​volume
• B)​profitability
• C)​prestige
• D)​meeting competition

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Definitions:

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level.

Inelastic

A description of a situation where the demand or supply for a good or service is relatively unresponsive to changes in price.

Price Elasticity

A measure of how much the quantity demanded or supplied of a good changes in response to a change in its price, indicating the sensitivity of demand or supply to price changes.