Marketing Final Exam

Blooms application 48 as a result of the a small

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Unformatted text preview: of only 5 percent, and the demand for both paint and the chemical that eliminates mold and mildew has remained stable. The demand for this chemical is: a. elastic b. derived c. bundled d. inelastic e. change resistant ANS: D A good is price inelastic if a change in price leads to a small change in quantity demanded or does not significantly affect demand for the product. PTS: 1 REF: 111 Thinking KEY: CB&E Model Customer OBJ: 07-6 TOP: AACSB Reflective MSC: BLOOMS Application 48. As a result of the _____, a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to manufacture the consumer product. a. demand fluctuation principle b. joint demand principle or division effect c. inelastic demand effect d. multiplier effect e. derived force effect ANS: D The multiplier effect (accelerator principle) is a phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product. PTS: 1 REF: 111 OBJ: 07-6 TOP: AACSB Reflective Thinking KEY: CB&E Model Customer MSC: BLOOMS Knowledge 49. Electric cars will increase the demand for electricity, which will then dramatically increase demand for the equipment needed to provide consumers with the electricity. This dramatic increase is due to the: a. demand fluctuator principle b. joint demand principle or division effect c. inelastic demand effect d. circumlocution effect e. accelerator principle ANS: E Increased consumer demand leading to a larger increase in demand for manufacturing equipment to make the consumer product is known as the multiplier effect (or accelerator principle). PTS: 1 REF: 111 Thinking KEY: CB&E Model Customer OBJ: 07-6 TOP: AACSB Reflective MSC: BLOOMS Application 50. Jif is the best-selling brand of peanut butter in the country. The manufacturer purchases large quantities of peanuts every year to manufacturer its product. This order size is an example of _____ and would give Jif an advantage over other buyers of peanuts. a. purchase volume b. joint demand c. fluctuating demand d. sales volume e. multiplier effect ANS: A Business customers buy in much larger quantities than consumers. PTS: 1 REF: 111 Thinking KEY: CB&E Model Customer OBJ: 07-6 TOP: AACSB Reflective MSC: BLOOMS Application 51. Buyers in the business market tend to _____ than buyers in the consumer market. a. use reciprocity less b. purchase in much smaller quantities c. buy more products that have a reduced probability of being affected by derived demand d. generate more stable demand trends e. be much more geographically concentrated ANS: E Business customers tend to be much more geographically concentrated than consumers. More than half of all U.S. business consumers are concentrated in just 7 of the 50 states. PTS: 1 REF: 111 OBJ: 07-6 TOP: AACSB Reflective Thinking KEY: CB&E Model Customer MSC: BLOOMS Comprehension 52. The...
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