Which of the following statements is FALSE about group pricing?
A)The higher the reservation price of a group, the higher its marginal benefit from the product.
B)The higher the reservation price of a group, the more inelastic the group's demand for the product.
C)The higher the reservation price of a group, the more the group members value the product.
D)The higher the reservation price of a group, the more sensitive the group is to price changes.

Question

Quizplus · Accepted Answer

The statement that is false about group pricing is that "the higher the reservation price of a group, the more sensitive the group is to price changes." In fact, the higher the reservation price, the less sensitive the group is to price changes, making this statement false.

Which of the Following Statements Is FALSE About Group Pricing