LEGO, the Danish Toymaker, Rather Than Worrying About Finding Ways

question 43

Multiple Choice

LEGO, the Danish toymaker, rather than worrying about finding ways to lower the price of its product in foreign markets has chosen (most LEGO sets are sold from $6-$223) to adopt a _____ strategy position.

• A)demand-based
• B)premium pricing
• C)elastic pricing
• D)promotion-related pricing
• E)sensitivity-based

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Definitions:

Willingness

The readiness or propensity of an individual to engage in a particular action or to accept a certain offer.

Law of Demand

A fundamental principle stating that, ceteris paribus, as the price of a good increases, the quantity demanded of that good decreases, and vice versa.

Product Price

The cost for which a single item or service is sold to consumers, which can consider production, marketing, and distribution expenses.

Quantity Demanded

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