Mutiple choices... 1- If demand is elastic rather than inelastic seller will con

Question

Mutiple choices...

1- If demand is elastic rather than inelastic seller will consider:

a. implementing price promotion to increase sales

b. introducing line extansion

c. maintaining the statues quo

d. raising their price too the point of inelasticity

2- In market-penetraction pricing, the company's objective is to_________, believing that higher sales volume will lead to lower unit costs and higher long-run profits.

a. Maximize volume

b. None of the above "explain"

3- The most logical way to approach a pricing decision is to consider the value (use + economic) that your product will provide consumers. Regardless of the nature of the product/service, the starting point in such an approach to pricing is:

a. Positive points of party

b. Negative ponts of differentiation

c. If not on the above, 'explain"

4- Which of the following is likely to make market inelastic?

a. When something is perceived as a shopping good

b. When the product under consideration is radically new innovation

c. When a consumer has to bear the entire cost

d. When the market is filled with many similar offerings

5- the most optimal price is one that is based on

a. Profit maximization

b. Value as determined bu the customer

c. Maximizing market share

Explanation / Answer

Solution-

1- If demand is elastic rather than inelastic seller will consider:

Ans- a. implementing price promotion to increase sales. Reason- Elastic demand means that the demand changes elastically if the price is changed. Therefore sales will increase due to price promotion.

2- In market-penetraction pricing, the company's objective is to_________, believing that higher sales volume will lead to lower unit costs and higher long-run profits.

Ans- a. Maximize volume

3- The most logical way to approach a pricing decision is to consider the value (use + economic) that your product will provide consumers. Regardless of the nature of the product/service, the starting point in such an approach to pricing is:

Ans- a. Positive points of party

4- Which of the following is likely to make market inelastic?

Ans- a. When something is perceived as a shopping good

5- the most optimal price is one that is based on

Ans- b. Value as determined bu the customer

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