Which of the Following Statements Regarding Price Lining Is Most

question 85

Multiple Choice

Which of the following statements regarding price lining is most accurate?

• A) In order for price lining to be effective, there should be at least five specified price points.
• B) Price lining assumes that demand is inelastic at each price point but elastic between price points.
• C) Price lining assumes that demand is elastic at each price point but inelastic between price points.
• D) Price lining is the preferred pricing strategy for governmental contracts.
• E) Price lining is the same as above-, at-, or below-market pricing.

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Definitions:

Two-factor Theory

A psychological theory that proposes emotion is based on two factors: physiological arousal and cognitive label.

Stimuli

External or internal events that elicit a response from the sensory system or the organism as a whole.

Interpretations

The act of explaining or understanding the meaning of something, often applied to data, texts, or artworks.

Cognitive Appraisal

The process by which an individual evaluates and interprets a situation or stimulus to determine its significance for his or her well-being.