Unilever Is Introducing a New Brand of Car Window Cleaner

question 150

Multiple Choice

Unilever is introducing a new brand of car window cleaner in market maturity. To speed its entry into the market-without encouraging price competition-Unilever should use:

• A) a flexible-price policy.
• B) a one-price policy.
• C) a penetration pricing policy.
• D) introductory price dealing.
• E) a skimming pricing policy.

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Definitions:

Market Equilibrium

A state in which market supply and demand are balanced at a certain price level, leading to economic stability in which the quantity supplied equals the quantity demanded.

Excess Supply

A situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price, often leading to a price decrease.

Excess Demand

A situation in which the demand for a product or service surpasses its supply in a market, often leading to price increases.

Market Equilibrium

A situation where the quantity of a good or service supplied equals the quantity demanded at a specific price level.