n NISM Certifications
XV NISM Series XV
Medium

What does “Pricing Power” mean?

Practice question from NISM XV Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Low manufacturing costs

  2. B

    High supplier bargaining power

  3. C

    High customer purchasing power

  4. Ability to raise prices without affecting demand

    Correct answer

Why this is the answer

Pricing power is a company’s ability to increase product prices without reducing demand, which helps protect margins and pass on cost increases.

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