Underpriced products sell very well,but they produce less revenue than they would have if the price were raised to the ________ level.
A)perceived value
B)value-added
C)variable cost
D)demand curve
E)price-floor

Question

Quizplus · Accepted Answer

Perceived value refers to the amount that customers believe a product is worth, and underpricing a product means that it is sold for less than its perceived value. While underpriced products may sell well, increasing the price to match the perceived value would result in higher revenue.

Option B, value-added, refers to the additional features or benefits that a product provides to customers, which can justify a higher price. Option C, variable cost, refers to the costs that are directly tied to producing a product and do not necessarily impact its price. Option D, demand curve, is a graphical representation of how much of a product consumers are willing to buy at various prices. Option E, price-floor, is a government-mandated minimum price for a product, which is not relevant to this scenario.

Underpriced Products Sell Very Well,but They Produce Less Revenue Than