Ethan Nicholas, who developed the iShoot application for the iPhone 3G, found that to maintain sales in a profitable competitive market, the price of a product
A) will usually rise.
B) will usually fall.
C) will usually remain stable.
D) will eventually fall to zero.

Question

Quizplus · Accepted Answer

Ethan Nicholas found that in a competitive market, the price of a product will usually fall in order to remain profitable. This is because there are likely similar products on the market and consumers will compare prices before making a purchase. If a product is priced too high, consumers may choose a similar, lower-priced product instead. Therefore, to maintain sales and remain competitive, the price of a product may need to be lowered.

Ethan Nicholas, Who Developed the IShoot Application for the IPhone