Marketing Final Exam

Prices for a specified period a distribution b supply

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Unformatted text preview: SB Reflective MSC: BLOOMS Knowledge 35. _____ is the quantity of a product that will be offered to the market at various prices for a specified period. a. Distribution b. Supply c. Price d. Equilibrium e. Elasticity ANS: B This is the definition of supply. PTS: 1 REF: 306 Thinking KEY: CB&E Model Pricing OBJ: 19-3 TOP: AACSB Reflective MSC: BLOOMS Knowledge 36. When the price of a product is set at a level where demand and supply are the same, _____ has been achieved. a. equilibrium b. stability c. leverage d. symmetry e. status quo ANS: A Price equilibrium is the price at which demand and supply are equal. PTS: 1 REF: 306 Thinking KEY: CB&E Model Pricing OBJ: 19-3 TOP: AACSB Reflective MSC: BLOOMS Knowledge 37. At a price of $654,400, the SSC Ultimate Aero has been ranked as the third most expensive car in the world. The company is only planning to build 25 of the current model. If that matches the demand for the Ultimate Aero, then a state of _____has been achieved. a. symmetry b. marketing balance c. unitary economics d. commerce stability e. price equilibrium ANS: E Price equilibrium is achieved at the price at which supply is equal to demand. PTS: 1 Thinking REF: 306 OBJ: 19-3 TOP: AACSB Reflective KEY: CB&E Model Pricing MSC: BLOOMS Comprehension 38. Bottles of Pure Hawaiian Air contain air that smells like the floral bouquet that greets tourists as they get off the plane in Hawaii. When a tourist shop began selling Pure Hawaiian Air, it charged $5 per bottle and could not keep up with the demand. It has since raised the price to $7. Now the shop is still selling all the bottles of Pure Hawaiian Air it carries, but the owner is not forced to reorder on a daily basis. The $7 price is probably a(n): a. supply schedule b. symmetrical price c. price equilibrium d. inventory equalizer e. inelastic price ANS: C When demand and supply are approximately equal, price equilibrium is reached. PTS: 1 REF: 306 Thinking KEY: CB&E Model Pricing OBJ: 19-3 TOP: AACSB Reflective MSC: BLOOMS Application 39. Consumers’ responsiveness or sensitivity to changes in price is known as: a. break-even b. equilibrium c. unitary revenue d. asymmetrical demand e. elasticity of demand ANS: E This is the definition of elasticity of demand. PTS: 1 REF: 307 Thinking KEY: CB&E Model Pricing OBJ: 19-3 TOP: AACSB Reflective MSC: BLOOMS Knowledge 40. When consumers are sensitive to price changes, _____ occurs. a. inelastic demand b. elastic supply c. elastic demand d. inelastic supply e. unitary elasticity ANS: C This is the definition of elastic demand. PTS: 1 REF: 307 Thinking KEY: CB&E Model Pricing OBJ: 19-3 TOP: AACSB Reflective MSC: BLOOMS Knowledge 41. While the sales of the Apple iPhone have been great from the beginning, when Apple released its iPhone 3G, it cut the price of the iPhone for $399 to $199. Sales exploded with one million iPhones sold the first weekend. Demand for the iPhone appears to be: a. unitary b. predictable c. synergistic d. inela...
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This document was uploaded on 09/29/2013.

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