When Apple,Inc.developed and introduced the iPad,it was unique as it essentially combined a touch-based portable computer,a wireless marketplace,and an eBook reader.As such,in the short run,it seemed that demand for the product would be inelastic,with no real existing competition.The recommend pricing strategy in such a situation would be:
A) low initial price, rising slightly when entering the growth stage.
B) high initial price, falling slightly when entering the growth stage.
C) high price, continuing through growth and maturity.
D) low price, continuing through growth and maturity.
E) low price initially, rising constantly through growth and into maturity.

Question

Quizplus · Accepted Answer

A high initial price is used when a new product faces little competition,needs to recoup research and development costs,and has inelastic demand.Prices will fall slightly when entering the growth stage.