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What Reason Can Be Given for the Importance of Price

Question 14

Multiple Choice

What reason can be given for the importance of price stabilization for tourist purchases?


A) Tourists are always hunting for bargains.
B) Rising prices automatically tend to reduce the volume of demand.
C) Tourists probably will not return so we can charge them more just so long as we keep the prices stable.
D) Tax collections to the government will be more favorable.
E) Demand will probably rise.

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