Question

a downturn in the economy has forced a home builder to lower its prices. this company has ______ prices.
○ flexible
○ inflexible
○ competitive
○ realistic
question 8
5 pts
a station across the street is offering gasoline for five cents cheaper per gallon. the other stations in the area decide to lower their prices as well. this is an example of ______ pricing.
○ realistic
○ unrealistic
○ inflexible
○ competitive

Explanation:

First Question (Home Builder Pricing)

To solve this, we analyze each option:

• "flexible" means adaptable; the company adjusted prices due to economic downturn, showing adaptability.
• "inflexible" means rigid, which contradicts the action of lowering prices.
• "competitive" focuses on competing with others, but here the trigger is economic downturn, not direct competition.
• "realistic" refers to being practical, but the key is the ability to change prices (flexibility). So "flexible" is correct.

Analyzing options:

• "realistic" and "unrealistic" relate to practicality, not the pricing strategy here.
• "inflexible" is rigid, but stations changed prices, so not inflexible.
• "competitive" pricing is when businesses adjust prices to compete (here, stations lower prices to compete with the cheaper station). So "competitive" fits.

Answer:

A. flexible

Second Question (Gas Station Pricing)