Year 7 Business Determining Prices

What is the definition of "cost price" for a product?

• The price at which the product is sold to customers

• The price at which the product was purchased or produced

• The price after applying discounts and promotions

• The price set by competitors for similar products

What is the "selling price" of a product?

• The initial price paid to suppliers for the product

• The price that includes all production costs

• The price after removing the costs for expenses

• The price at which the product is offered to customers

Which of the following is NOT a factor that can influence pricing decisions?

• Customer preferences

• Production costs

• Current weather conditions

• Competitor prices

Which factor refers to the money left over after removing the cost price from the selling price?

• Expenses

• Profit

• Cost of Goods Sold

What is a "markup" in pricing?

• The original cost of the product

• The difference between the cost price and selling price

• The price customers are willing to pay

• The price set by competitors

What is the "market price" of a product?

• The lowest price a product can be sold for

• The average price of a similar product in the market

• The highest price a customer is willing to pay for a product

What does the term "demand" refer to in pricing?

• The quantity of a product available in the market

• The amount of money a business spends on producing products

• The desire and ability of customers to buy a product

• The cost of raw materials used in making a product

What is a "psychological pricing" strategy?

• Setting prices based solely on production costs

• Adjusting prices based on the time of year

• Matching prices with competitors

• Pricing products just below a round number (e.g., $9.99 instead of $10)

What does RRP stand for?

• Recommended retail price

• Retails recommended price

What is a "loss leader" pricing strategy?

• Selling a product at a loss to attract customers to other products

• Setting prices based on the cost of materials

• Selling products at the same price as competitors

• Increasing prices gradually over time