French Quarter Inns reduces the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded by an average of five per night. This is an indication that suites at this hotel are an example of a(n) product.
A) reverse-demand
B) inferior
C) standard
D) secondary-demand
E) prestige

Question

Quizplus · Accepted Answer

Prestige products often see a decrease in demand when prices are lowered, as consumers may perceive the product as less exclusive or desirable.

French Quarter Inns Reduces the Price of a Suite from $225