Nakamichi introduced a set of true high-fidelity headphones at a price of $2,000. However, the product simply did not find a market. Most likely, this was due to:
A) The price exceeded the consumer price ceiling.
B) The price was below the consumer price floor.
C) Fixed costs were too high.
D) Competitors' prices were too high.

Question

Quizplus · Accepted Answer

The price exceeding the consumer price ceiling means that the product was priced higher than what consumers were willing to pay for headphones, regardless of their high fidelity, leading to poor market acceptance.

Nakamichi Introduced a Set of True High-Fidelity Headphones at a Price