Post Utme Al Hikmah University 2021 Commerce Question 3

Practice objective / multiple choice question 3 from the 2021 Post Utme Al Hikmah University Commerce examination.

Post Utme Al Hikmah University 2021 Commerce Objective / Multiple Choice
Question 3 POST_UTME_AL-HIKMAH_UNIVERSITY • 2021 • COMMERCE • objective

A firm is considering expanding its product line to include a new product. The new product has a higher price elasticity of demand than the firm's existing products. What is the implication of this for the firm's pricing strategy?

Answer Options

A. The firm should increase the price of the new product.
B. The firm should decrease the price of the new product.
C. The firm should maintain the same price for the new product.
Correct Answer D. The firm should consider the price elasticity of demand for the new product when setting its price.
Correct Answer
D
Correct Option:
The firm should consider the price elasticity of demand for the new product when setting its price.

About This Question

This is Post Utme Al Hikmah University 2021 Commerce Question 3. It is one of the objective questions from the 2021 Post Utme Al Hikmah University Commerce examination.

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