Question

you and your competitor offer similar products that are necessities to your customer base. although you believe there is a difference in the two products, the customers do not. your product costs more than your competitor’s. which product will your customers purchase?
select one:
○ a. your competitor’s product
○ b. your product
○ c. both products
○ d. neither product

what are the main determinants of price on a product?
select one:
○ a. manufacturer’s suggested retail price
○ b. selection and choice
○ c. advertising and display
○ d. cost, supply, and demand

Explanation:

For the first question: Customers perceive the products as identical, and your product is more expensive. Rational customers will choose the lower-priced, functionally equivalent necessity.
For the second question: Core economic and business principles identify production costs, market supply, and consumer demand as the fundamental factors that set a product's price.

Answer:

1. a. Your competitor's product
2. d. Cost, supply, and demand