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The "ceiling" upon which pricing strategies are built is Demand Costs Return on Imvestment Sales projections...

The "ceiling" upon which pricing strategies are built is

Demand

Costs

Return on Imvestment

Sales projections

Supply
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Answer #1

Option A is correct - Demand

Upon deciding prices in pricing strategies by the firms, the uppermost limit or the ceiling above which the price should not cross is the demand of the good. Demand is a very important factor determining the highest price that can be charged to the customers. The demand for the good reflects how much that good is demanded in the market over a price range. It also tells us the maximum price that the customers are able and willing to pay for the good.

If the firms set a price above the customer's willingness and ability to pay then no one will buy their good and their pricing strategy will fail and bring losses to the firm. So it is important to keep in mind the demand for the good in the market (that tells us consumer's ability and willingness to pay for the good) as a limit or ceiling above which the good should not be priced.

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