Multiple Choice
Which of the following best explains why people may be impatient to make a purchase?
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5. Consumer and Producer Surplus; Price Ceilings and Floors
Consumer Surplus and Willingness to Pay
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Both market penetration and market development strategies primarily involve ________.
A
increasing sales by expanding the customer base or usage of a product
B
eliminating all forms of market competition
C
setting prices equal to consumers' willingness to pay
D
reducing production costs to maximize consumer surplus
Verified step by step guidance1
Step 1: Understand the key terms in the problem. Market penetration and market development are growth strategies used by firms to increase sales and expand their market presence.
Step 2: Define market penetration strategy: it focuses on increasing sales of existing products to the current market, often by encouraging more frequent use or attracting customers from competitors.
Step 3: Define market development strategy: it involves expanding the customer base by entering new markets or segments with existing products.
Step 4: Recognize that both strategies aim to increase sales by expanding the customer base or increasing product usage, rather than focusing on pricing, cost reduction, or eliminating competition.
Step 5: Conclude that the correct description of both strategies is 'increasing sales by expanding the customer base or usage of a product.'
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