What Will Happen When a Firm Raises the Price of a Differentiated

question 85

Multiple Choice

What will happen when a firm raises the price of a differentiated product in an imperfectly competitive market?

• A) It will see lower sales but will not lose all its sales.
• B) It will lose all its sales to competitor firms.
• C) It will actually get new customers from other firms.
• D) It will see an increase in revenues.

---

Definitions:

Proximal Processes

Reciprocal interactions between a person and her immediate external environment, including other people, the physical environment, or informational sources such as books or movies. In Bronfenbrenner’s biological model, all developments are a function of these processes.

Bronfenbrenner's Model

A theoretical model proposing that human development is influenced by various types of environmental systems, from immediate family to broader societal contexts.

Immediate Environment

denotes the direct surroundings or conditions in which a person lives or operates, impacting their behavior and development.

Incremental Change

Gradual alterations or developments over time that accumulate to produce significant overall change.