When Demand Is Highly Price Sensitive, the Company Needs to Consider

question 17

Multiple Choice

When demand is highly price sensitive, the company needs to consider how it can _________________ from a global perspective.

• A) raise prices
• B) lower prices
• C) lower service
• D) raise quality
• E) reduce costs

---

Definitions:

Exercise Price

The specified price at which an option holder can buy (call) or sell (put) the underlying security or commodity.

Obligation

A duty or responsibility to act or perform in a certain way, often legally binding, resulting from a contract, law, or moral responsibility.

Shareholders

Individuals or entities that own shares in a corporation, giving them rights to dividends and a say in company matters, typically through voting.

Liquidation

The process of bringing a business to an end and distributing its assets to claimants, often due to insolvency.