Which of the following has the most impact on setting a market-based price?
A)changes in quality of the product or service
B)prices charged by the company's suppliers
C)the efficiency of the company's supply chain
D)demand for the service or product

Question

Quizplus · Accepted Answer

The demand for a service or product is the primary factor that sets a market-based price. The higher the demand, the higher the price tends to be. Customers are willing to pay more for a product or service they desire, and businesses can charge higher prices when there is high demand. Other factors, such as changes in quality or efficiency of the supply chain, can impact pricing indirectly by affecting demand. However, demand remains the most significant factor.

Which of the Following Has the Most Impact on Setting