Question

In pricing, the list price is determined by estimating what consumers are willing to pay for a product and then backing off a bit to provide a cushion.

a) True
b) False

Answer 1

The list price is not solely determined by estimating consumer willingness to pay.

Step-by-step explanation:

The statement that the list price is determined by estimating what consumers are willing to pay for a product and then backing off a bit to provide a cushion is false. In pricing, the list price is often set based on several factors, such as production costs, competitive pricing, and desired profit margins. While consumer willingness to pay may be considered, it is not the sole determining factor in setting the list price.