Costs should not be part of price determination, especially not as a floor for long run pricing.
a. True
b. False
ANSWER: False
Marketing Chapter 20
- The greater the number of different uses for a product, the more ___ demand tends to be.
- Which of the following would imply elastic demand?
- All of the following factors directly affect the elasticity of demand EXCEPT:
- Demand for which of the following products or services is most likely inelastic?
- When Nesco brand food hydrators sold for $59.99, Nesco sold 90 dehydrators. When the company dropped the price of its dehydrators to $44.95, it sold 145 dehydrators. Demand for the food dehydrators appears to be:
- When the NES Group lowered the price of its professional-grade meat slicers from $2,300 to $1,125, demand doubled from four units sold per month to eight units per month. However, total revenue dropped. This is an example of:
- If price goes up or down and revenue stays the same:
- When price decreases and total revenue falls, demand is:
- ___ occurs when an increase in sales exactly offsets a decrease in price so that total revenue remains exactly the same.
- If price ___ and revenue ___ , demand is elastic.
- What happens when demand is elastic?
- While the sales of the Apple iPhone have been great from the beginning, when Apple released its iPhone 4S and cut the price of the iPhone 4 from $399 to $199, sales exploded with one million iPhone 4 models sold the first weekend. Demand for the iPhone appears to be:
- When consumers are sensitive to price changes, ___ occurs.
- Consumers' responsiveness or sensitivity to changes in price is known as:
- Bottles of Pure Hawaiian Air contain air that smells like the floral bouquet that greets tourists as they get off the plane in Hawaii. When a tourist shop began selling Pure Hawaiian Air, it charged $5 per bottle and could not keep up with the demand. It has since raised the price to $7. Now the shop is still selling all the bottles of Pure Hawaiian Air it carries, but the owner is not forced to reorder on a daily basis. The $7 price is probably a(n):
- At a price of $6,000, only 191 of the Moulton 60 model bicycle are being made. If Moulton sells each one of the bicycles at that price, then a state of ___ has been achieved.
- When the price of a product is set at a level where demand and supply are the same, price ___ has been achieved.
- ___ is the quantity of a product that will be offered to the market at various prices for a specified period.
- The ___ is the quantity of a product that will be sold in the market at various prices for a specified period, and ___ is the quantity of a product that will be offered to the market by suppliers at various prices for a specified period.
- Peggy's Twist Shack sells softserve ice cream. Peggy graphed the demand per week for vanilla ice cream cones. The graph indicates a demand schedule that slopes downward and to the right. This graph indicates that the quantity of vanilla ice cream cones demanded increases as:
- Most demand curves slope:
- The price of the good or service is a key decision for a marketer because it most significantly and directly affects the product's:
- The quantity of a product that will be sold in the market at various prices for a specified period is called:
- Although many factors can influence price, the primary determinants are:
- Which of the following statements describes an advantage of status quo pricing?