A "penetration pricing policy":
A. is the same as a "meeting competition" price-level policy.
B. is wise when demand is fairly inelastic--offering an "elite" market.
C. involves temporary price cuts to speed new products into market.
D. involves a series of step-by-step price reductions along an inelastic demand curve.
E. may be wise if a firm expects strong competition very soon after its product introduction.
Answer: E