Which of the following is not a factor that determines the price of a product?
Answer Details
The factor that does not determine the price of a product is "Customers ability to pay".
The price of a product is determined by several factors, including the quality of the product, competition from suppliers, and the price of similar products in the market. However, the customers' ability to pay is not a direct factor that determines the price of a product.
The customers' ability to pay can influence demand for a product, and thus indirectly affect its price. However, the price is ultimately determined by the production costs and the need for profitability. If a company sets a high price for a product that customers cannot afford, the demand will be low, and the company may have to adjust the price to make the product more affordable.
Therefore, while customers' ability to pay can indirectly influence the price of a product, it is not a direct factor that determines the price.