[amp_mcq option1=”Markets where the selling firms face perfect competitive situations” option2=”Markets where the selling firms want to gain popularity of the products having high cross elasticity of their demand” option3=”Markets where sellers rely on their customer’s high propensity to consume a prestigious commodity” option4=”Markets where the selling firms have entered into the stages of maturity and saturation” correct=”option3″]<\/p>\n
The correct answer is C. Markets where sellers rely on their customer’s high propensity to consume a prestigious commodity.<\/p>\n
In a perfect competitive market, firms are price-takers, meaning that they have no control over the price of their products. As a result, they cannot charge a price above the prevailing market price.<\/p>\n
In markets where firms want to gain popularity of the products having high cross elasticity of their demand, firms may charge a price below the prevailing market price in order to attract more customers. This is because the demand for these products is very sensitive to price changes.<\/p>\n
In markets where selling firms have entered into the stages of maturity and saturation, firms may charge a price above the prevailing market price in order to maintain their profits. This is because the demand for these products is relatively inelastic, meaning that a change in price will not have a significant impact on demand.<\/p>\n
However, in markets where sellers rely on their customer’s high propensity to consume a prestigious commodity, firms may charge a price above the prevailing market price even if the demand for these products is relatively elastic. This is because consumers of prestigious commodities are willing to pay a premium for products that they perceive as being of high quality or status.<\/p>\n
For example, a luxury car company may charge a price above the prevailing market price for its cars even though there are many other cars available at a lower price. This is because the company knows that there are consumers who are willing to pay a premium for a luxury car.<\/p>\n
In conclusion, the correct answer is C. Markets where sellers rely on their customer’s high propensity to consume a prestigious commodity.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Markets where the selling firms face perfect competitive situations” option2=”Markets where the selling firms want to gain popularity of the products having high cross elasticity of their demand” option3=”Markets where sellers rely on their customer’s high propensity to consume a prestigious commodity” option4=”Markets where the selling firms have entered into the stages of maturity … <\/p>\n