As the Marketing Director for a Company That Produces Home

Multiple Choice

As the marketing director for a company that produces home office equipment, you've been asked to weigh in on a suggested price for the company's new all-in-one printer. Similar products retail for $200 to $600, with most of them falling in the $350 to $400 range. You'd like to position your company's product where there is less competition, so you suggest pricing yours:

A) at $150 because the higher the price, the more likely you are to have to discount the product later on.
B) at $150 because the lower the price, the less supply already on the market.
C) at $200 because the lower the price, the higher the sales volume and the greater the profits.
D) at $250 because the lower the price, the more likely you'll be to hit market equilibrium.