When Setting a Price Level Policy, a Good Marketing Manager

Multiple Choice

When setting a price level policy, a good marketing manager knows that:

A) introductory price dealing usually does not increase sales.
B) a penetration price makes the most sense when there is a large "elite" market.
C) a "skimming" price may lead to low profits if demand is very elastic.
D) it's easy to raise prices if the initial price is too low.
E) None of these alternatives is correct.