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In praxar golf, which of the following statements is true?

a. the government sets the price for season memberships in the golf industry.
b. each market segment has a different purchasing behaviour.
c. the interest rate remains constant throughout the simulation.
d. the number of rounds played is consistent from year to year.
e. every company has the same number of customers.

1 Answer

7 votes

Final answer:

In Praxar Golf, statement b, 'each market segment has a different purchasing behavior,' is true because it aligns with the principles of economic demand and supply. Other statements about government pricing, constant interest rates, consistent play, or equal customer numbers are typically not accurate in a free market.

Step-by-step explanation:

In Praxar Golf, economists would suggest that due to the fundamental principles of demand and supply, government intervention in setting prices can lead to unintended consequences. Therefore, statement a, which claims that 'the government sets the price for season memberships in the golf industry,' is typically not true in a free market scenario. In such a scenario, prices are determined by the interaction of supply and demand, not directly set by the government.

However, statement b, 'each market segment has a different purchasing behavior,' is likely true as it reflects the concept that different consumer groups may value and therefore purchase goods like golf memberships differently based on factors like income, preferences, and other demographic characteristics.

The statement about the interest rate remaining constant (c) or the number of rounds played being consistent from year to year (d) would not typically hold true in a dynamic market.

Lastly, it is improbable for every company to have the same number of customers (e), as competition, marketing strategies, brand reputation, and other factors would naturally lead to variability in customer numbers.

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