Question

3. INTERPRET: Read and interpret the following statement: Prices also allow producers to target the audience they want with the products that will sell best to that audience.

Answer 1

Answer:

The phrase indicates that in order to decide the final price of the product, producers must keep in mind whether that price is compatible with the economic situation of the consumer they wish to attract.

Explanation:

When producers establish a strategy for producing and selling a product, they must take into account the economic condition of the consumers they wish to attract.

If the intention is to attract consumers from lower economic classes, producers must establish the production of their products with cheaper factors that guarantee that this product has a final price compatible with the economic class of its consumers. However, if the target consumer belongs to higher economic classes, production may use more expensive factors, which allow the product to have a higher final price.