If consumers hear reports that make them worry about a product safety, they are less likely to purchase the product. Consumers want to know that the product they are purchasing is safe for them to consume. If there are elements that question their safety, they may not purchase the item due to not knowing what the side effects may be. If the price rises, I would assume even less people would purchase the product if it’s set at a higher price and with product safety in question.
Answer: Option (D)
Explanation:
Predatory pricing which is also known as or also referred to as undercutting, which is described a the pricing strategy under which a commodity, service or product is provided at a low price with an intention in order to achieve the market of new customers , or can also be implemented in order to drive the competitors out of the current market/area , also to enforce the barriers to exit and entry for the new competitors.