Test5.01 Price is Right Laps

Front

Charise is considering how much to charge for her small business’s products. Charise is involved in

Back

pricing.

Front

A buyer is willing to pay $9.99 for a product. If the seller is willing to accept that amount, then $9.99 is the

Back

exchange price.

Front

Sellers must carefully set prices so that buyers feel they are receiving __________ value for their money.

Back

optimum

Front

What might happen if a business’s customers feel that they are not getting the most value for their money?

Back

Customers spend money elsewhere.

Front

Can prices be set too low?

Back

Yes, customers may feel quality is too low.

Front

With what do many customers associate price?

Back

Quality

Front

A downturn in the economy has forced a home builder to lower its prices. This company has __________ prices.

Back

flexible

Front

A station across the street is offering gasoline for five cents cheaper per gallon. The other stations in the area decide to lower their prices as well. This is an example of __________ pricing.

Back

competitive

Front

To set prices, businesses must price the physical product and all of its associated ___

Back

services.

Front

In which of the following businesses is the business owner usually responsible for setting prices: Walmart, Java Joe’s Coffee Shop, Sears, Macy’s

Back

Java Joe’s Coffee Shop