Sunshine Cereals has been in the market for seven decades. They attribute their success to maintaining an almost stable product price in the face of inflation as well as stiff competition from rival firms. The management at Sunshine Cereals knows that any substantial increase in product price would translate into loss of sales as consumers are used to paying a specific price for their cereals. This specific price is an example of (a):

Sunshine Cereals has been in the market for seven decades. They attribute their success to maintaining an almost stable product price in the face of inflation as well as stiff competition from rival firms. The management at Sunshine Cereals knows that any substantial increase in product price would translate into loss of sales as consumers are used to paying a specific price for their cereals. This specific price is an example of (a):

Sunshine Cereals has been in the market for seven decades. They attribute their success to maintaining an almost stable product price in the face of inflation as well as stiff competition from rival firms. The management at Sunshine Cereals knows that any substantial increase in product price would translate into loss of sales as consumers are used to paying a specific price for their cereals. This specific price is an example of (a):


a. customary price.
b. value price.
c. full-cost price.
d. incremental-cost price.

Answer: A


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