Promotion Can Help Keep Prices Lower Because

question 174

Multiple Choice

Promotion can help keep prices lower because

• A) demand for the product does not increase.
• B) promotion of prices intensifies price competition.
• C) promotion of prices leads to nonprice competition.
• D) promotion tends to reduce consumers' price sensitivity.
• E) promotion tends to stabilize a product's price elasticity of demand.

---

Definitions:

Gold Standard

A monetary system where a country's currency or paper money has a value directly linked to gold, ensuring stability in exchange rates.

U.S. Dollar

The official currency of the United States of America, commonly used worldwide as a reserve currency and standard for international trade.

Kenyan Shillings

The official currency of Kenya, which is subdivided into 100 cents.

Floating Rate System

A currency exchange regime where a country's currency value is allowed to fluctuate in response to foreign exchange market mechanisms.