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Which of the Following Is True of Product Line Pricing

Question 56

Multiple Choice

Which of the following is true of product line pricing?


A) As a business adds more products to its product line,it decreases the risk of cannibalizing existing product sales.
B) Adding more products to a business's product line enhances sales growth.
C) Products that have a negative cross-price elasticity are substitutes.
D) It is not necessary to know the degree to which a product has cross-price elasticity with other products.
E) Products that have a positive cross-price elasticity are complementary products.

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