Which of the following statements about consumer demand as a pricing constraint is most accurate?
A)The number of potential buyers for the product class has little effect on the price a seller can charge.
B)The number of potential buyers for the product affects the price a seller can charge, but only if the product is a luxury item.
C)The number of potential buyers for the product affects the price a seller can charge, but only if the product is a necessity item.
D)The number of potential buyers for the brand affects the price a seller can charge in the growth stage of a product life cycle, but not in the introductory stage.
E)Whether the item is a luxury or a necessity affects the price a seller can charge.

Question

Quizplus · Accepted Answer

The statement that whether the item is a luxury or a necessity affects the price a seller can charge is most accurate. Luxury items can generally be priced higher due to their exclusivity and perceived value, while necessity items may be subject to more price sensitivity and competition. The number of potential buyers can also have an effect on pricing, but this is largely dependent on the specific product and market conditions. The other statements are either too broad or too limited in their scope.

Which of the Following Statements About Consumer Demand as a Pricing