In prestige pricing, the demand curve is
A) unitary throughout.
B) elastic throughout.
C) positively sloped throughout.
D) negatively sloped at all prices except those considered too low by consumers.

Question

Quizplus · Accepted Answer

Prestige pricing involves setting a high price to give the perception of high quality or exclusivity. If the price is too low, consumers may perceive the product as low quality, leading to a decrease in demand, hence the demand curve is negatively sloped except at low prices.

In Prestige Pricing, the Demand Curve Is