Pricing Unit Test

A satisfactory price means:

• that the consumer views the purchase as a value
• A business makes a profit on the sale
• Both a & b
• None of the above

____________ establishes and communicates the value of products and services to prospective customers.

• Advertising
• Promotion
• Marketing
• Pricing

All of the following are goals for pricing EXCEPT

• Gaining market share
• Getting a high return on investment
• Having the lowest prices and profit margins
• Pricing competitively

Pricing is important because it establishes and maintains

• Competitive edge
• Image
• Profits
• All of the above

_________________describes the relationship between changes in a product's price and the demand for that product.

• Utility
• Elasticity of Supply
• Elasticity of Demand
• Economics

When the price of a diabetes medicine jumped from $100 a month to $500 a month, David still purchased the product because it is necessary for his survival. This is an example of ____________.

• Elasticity of Supply
• Inelastic demand
• Inelastic Supply
• Elasticity of Demand

Rack Room Shoes advertises that customers can purchase one pair of shoes and get the next pair for $5. The sale is very effective, and inventory is greatly diminished. This is an example of ______________.

• Elasticity of Supply
• Inelastic demand
• Inelastic Supply
• Elasticity of Demand

If there is a small supply of the product, but the quantity demanded is high the price will usually be _______.

• High
• Low
• Depends on business
• Buyer's market

If there is a large supply of the product and the quantity demanded is low, the price will usually be ______.

• High
• Low
• Depends on business
• Seller's market

The point at which sales revenue equals the cost and expenses of making and distributing a product

• Surplus
• Shortage
• Inelastic demand
• Break-even point