What is the overall effect when a good or service is priced higher than competitors?
A) There will be an implication of higher quality standards.
B) There will be greater demand for the product.
C) Sales will start slow, but increase over time.
D) There will be a larger market size, but smaller profit.
E) There will be a smaller market and smaller profit.

Question

Quizplus · Accepted Answer

A)High prices usually limit market size but increase profits per unit. High prices may also attract customers by implying that a product is of high quality.

What Is the Overall Effect When a Good or Service