The setting of prices depends on a number of factors. Which of the following is not a factor?
A) How price affects demand.
B) How sales revenue is linked to price.
C) How cost is linked to price.
D) All of the options given above are correct.

Question

Quizplus · Accepted Answer

All the options given (A, B, C) are indeed factors that affect the setting of prices. How price affects demand relates to the price elasticity of demand, how sales revenue is linked to price involves understanding the revenue implications of different pricing strategies, and how cost is linked to price is fundamental in ensuring that the price covers the costs and generates a profit. Therefore, none of the options listed is incorrect; they all are factors in setting prices.

The Setting of Prices Depends on a Number of Factors