Which of the Following Is True of Price Changes

Multiple Choice

Which of the following is true of price changes?

A) Over-demand leads to companies initiating price cuts.
B) Changes in price do not affect a brand's image.
C) Customer reaction to price changes is not as important as competitor reaction.
D) A drop in price can adversely affect how consumers view the brand.
E) Excess capacity is a factor that causes increases in price.