Marketing Final Exam

For a marketer because it most significantly and

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Unformatted text preview: del Pricing OBJ: 19-3 TOP: AACSB Reflective MSC: BLOOMS Knowledge 29. The price of the good or service is a key decision for a marketer because it most significantly and directly affects the product’s: a. distribution b. costs c. demand d. promotion e. quality ANS: C The quantity of a product that people will buy depends on its price. PTS: 1 REF: 305 Thinking KEY: CB&E Model Pricing 30. Most demand curves slope: a. b. c. d. e. OBJ: 19-3 TOP: AACSB Reflective MSC: BLOOMS Comprehension horizontally upward and to the right downward and to the left vertically downward and to the right ANS: E For most products when prices increase, demand will decrease. PTS: 1 REF: 305 Thinking KEY: CB&E Model Pricing OBJ: 19-3 TOP: AACSB Reflective MSC: BLOOMS Comprehension 31. The manager of a souvenir shop in Florida graphed the demand per week for fresh orange juice. The graph indicates a demand schedule that slopes downward and to the right. This graph indicates that the quantity of juice demanded increases as: a. cost increases b. supply decreases c. price increases d. price decreases e. supply increases ANS: D The lower the price, the more goods or services will be demanded. PTS: 1 REF: 305 Thinking KEY: CB&E Model Pricing OBJ: 19-3 TOP: AACSB Reflective MSC: BLOOMS Application 32. Khimaira Farms sells handcrafted cookie cutters. When graphed, the demand schedule for Khimaira Farms brand cookie cutters forms a straight line. If at $3 per cutter, 500 cookie cutters are demanded, and at $4 per cutter, 450 cookie cutters are ordered, how many will be ordered at a price of $6 per cutter? a. 350 b. 450 c. 400 d. 333 e. 375 ANS: A With a linear demand curve, the slope of the line will remain constant. In this example, for every $1 that price increases, sales will decrease by 50 cookie cutters. PTS: 1 REF: 305-306 KEY: CB&E Model Pricing OBJ: 19-3 TOP: AACSB Analytic MSC: BLOOMS Analysis 33. Personal Touch produces and markets beaded purses. When graphed, the demand schedule for its purses is a straight line. If one purse costs $20, 5,000 beaded purses are sold. At $25, 4,500 purses are sold. How many beaded purses will be sold if the price per purse is increased to $30? a. 5,500 b. 4,250 c. 4,000 d. 3,750 e. 3,500 ANS: C With a linear demand curve, the slope of the line will remain constant. In this example, for every $5 increase in price, sales will decrease by 500 beaded purses. PTS: 1 REF: 305-306 KEY: CB&E Model Pricing OBJ: 19-3 TOP: AACSB Analytic MSC: BLOOMS Analysis 34. The _____ is the quantity of a product that will be sold in the market at various prices for a specified period, and _____ is the quantity of a product that will be offered to the market by suppliers at various prices for a specified period. a. demand; equity b. demand; supply c. supply; demand d. inventory; demand e. inventory; supply ANS: B These are the definitions of demand and supply, respectively. PTS: 1 REF: 305-306 Thinking KEY: CB&E Model Pricing OBJ: 19-3 TOP: AAC...
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