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WorksheetsEntrepreneurship - Pricing Review
Total questions: 12
Worksheet time: 6mins
A buyer is willing to pay $12.99 for a product. If the seller is willing to accept $12.99, then that amount is the
markdown
value
exchange price
markup
What might happen if a business's customers feel that they are not getting the most value for their money?
Customers purchase more
Sales remain the same
Customers spend money elsewhere
Sales increase
Can a business set the price of their product too low?
No, the lower the better
Yes, customers may feel quality is low
No, the lower the price the more customers will buy
Yes, customers may feel quality is too high
After a good is produced, the price of that good should be set at a point at which
competition has sold the good
the price is twice the cost
a large profit is made
the good will sell
Business A spends less on advertising than Business B. Both businesses sell the same products, but Business B charges higher prices than Business A. Which of the following factors has affected the prices of the businesses:
Supply
Promotion
Product
Place
A downturn in the economy has forced a home builder to lower its price. This company has ______ prices.
realistic
flexible
competitive
inflexible
To set prices, businesses must price the physical product and all of its associated
features.
services.
value.
physical characteristics.
In which of the following businesses would a separate department most likely be responsible for establishing prices?
A small boutique
Local clothing store
Hair solon
Chain store
Which of the following is a product factor that sandwich shops consider when deciding on the price to charge for menu items?
Method of delivery
Amount of advertising
Cost of food
Type of decor
Businesses might consider increasing their prices during times when
Goods and services are plentiful
Economic conditions are good
Many people are unemployed
Customers have less disposable income
What pricing strategy would be most effective for a business that wants to create an image of very good quality and prestige?
Wholesale
Moderate
High
Discount
When Steve sets prices for his company, he strives to maximize profit, which is considered a(n)
advertising goal
transportation choice
product strategy
pricing objective
