Customer demand is an important consideration in establishing prices. Demand, or at least potential demand, actually establishes the ___________ for a firm's prices.
A) ceiling
B) losses
C) profits
D) floor

Question

Quizplus · Accepted Answer

Demand sets the maximum price that customers are willing to pay for a product or service, which acts as a ceiling on the price a firm can charge.

Customer Demand Is an Important Consideration in Establishing Prices