Having a Competitive Price Is Likely to

question 243

Multiple Choice

Having a competitive price is likely to

• A) be more important for a homogeneous shopping product than for a specialty product.
• B) be more important for a heterogeneous shopping product than for a homogeneous shopping product.
• C) be more important for an emergency product than for a staple.
• D) keep a product from falling into the "unsought" product class.
• E) None of these alternatives is correct.

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Definitions:

Competitive Market Economy

An economic system where businesses compete freely with minimal government intervention, prices are determined by supply and demand, and resources are allocated through the price mechanism.

Short Supply

Short supply refers to a market condition where the availability of a good or service is less than the demand for it, often leading to higher prices.

Profitable Use

The application of resources in a manner that generates a financial gain or benefit to the user or owner.

Shortage

A situation where the demand for a product or service exceeds its supply in a market.