Each of the following is an example of a market segment except:

• A. Businesses located in urban areas
• B. Consumers aged 18-25
• C. The equilibrium price in a competitive market
• D. Households with annual income above \$100,000

Answer: (C)

Verified step by step guidance

1. Understand the concept of market segmentation: Market segments are distinct groups of consumers or businesses within a market that share similar characteristics, such as demographics, location, or income level.
2. Identify the options that represent market segments: Look for groups defined by characteristics like age (Consumers aged 18-25), location (Businesses located in urban areas), or income (Households with annual income above \$100,000).
3. Recognize that the equilibrium price in a competitive market is not a group or segment but rather a market outcome or price point determined by supply and demand.
4. Conclude that the option which is not a market segment is the one that describes a market outcome (equilibrium price) rather than a group of consumers or businesses.
5. Summarize that market segments are about categorizing participants in the market, while equilibrium price is about the interaction of supply and demand.