n NISM Certifications
XV NISM Series XV
Medium

Which of these represents a company’s 'Pricing Power'?

Practice question from NISM XV Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Low manufacturing cost

  2. B

    Customers with high purchasing power

  3. Ability to raise prices without reducing demand

    Correct answer

  4. D

    Suppliers with high bargaining power

Why this is the answer

Pricing power refers to a company’s ability to increase prices without losing customers, helping maintain or grow profit margins.

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