A firm sets its prices after studying consumer desires and the range of prices that are acceptable to its target market. This approach illustrates ___ pricing.
A) cost-based
B) competition-based
C) price-floor
D) demand-based

Question

Quizplus · Accepted Answer

This approach is demand-based pricing, as it involves setting prices based on consumer desires and what they are willing to pay, rather than solely on costs or competitors' prices.

A Firm Sets Its Prices After Studying Consumer Desires and the Range