Post Utme Achievers University 2021 Commerce Question 17

Practice objective / multiple choice question 17 from the 2021 Post Utme Achievers University Commerce examination.

Post Utme Achievers University 2021 Commerce Objective / Multiple Choice
Question 17 POST_UTME_ACHIEVERS_UNIVERSITY • 2021 • COMMERCE • objective

A firm is considering entering a new market. The market research indicates that the demand for the product is price-elastic. What is the implication of this for the firm's pricing strategy?

Answer Options

A. The firm should set a high price to maximize profits.
Correct Answer B. The firm should set a low price to increase market share.
C. The firm should use a penetration pricing strategy.
D. The firm should use a skimming pricing strategy.
Correct Answer
B
Correct Option:
The firm should set a low price to increase market share.

About This Question

This is Post Utme Achievers University 2021 Commerce Question 17. It is one of the objective questions from the 2021 Post Utme Achievers University Commerce examination.

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