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

Whether the product is a luxury or a necessity can greatly affect the price a seller can charge. Luxury items tend to have higher prices due to their perceived value and exclusivity, while necessity items may have lower prices as consumers may be more price-sensitive and have limited alternatives. The number of potential buyers can also play a role, but it is not the most accurate statement as it depends on the product and its stage in the product life cycle.

Which of the Following Statements About Consumer Demand as a Pricing