Price leaders
A) are sold at the highest possible price.
B) maximize profits.
C) lead to increased revenue or lower costs when prices are increased or decreased.
D) are sometimes sold at less than cost in hopes that sales of other products will increase.
E) lead the industry in sales.

Question

Quizplus · Accepted Answer

Price leaders are products sold at a relatively low price with the intention of attracting customers and stimulating sales of other products. In some cases, the price may even be set below the cost to produce the product. The hope is that customers will come to the store to buy the low-priced item and also purchase other items with higher profit margins, ultimately leading to an increase in overall revenue.

Price Leaders