Priced ice cream this is known as the a substitutio n

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priced ice cream. This is known as the: A. substitutio n effect B. income effect C. brand effect D. commercial effect E. value effect The substitution effect refers to consumers' ability to substitute other products for the focal brand. The greater the availability of substitute products, the higher the price elasticity of demand for any given product will be. AACSB: Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-03 Explain price elasticity. Topic: The Five Cs of Pricing 133. (p. 277) The point at which the number of units sold generates enough revenue to equal the total costs of running an operation is known as the:
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Learning Objective: 13-04 Describe how to calculate a product's break-even point. Topic: The Five Cs of Pricing 134. (p. 280) Your spice company's pricing is set according to the laws of supply and demand. Therefore, when selling your spices you depend on the market to establish the price at which you will sell your spices. Which type of market are you operating in? A purely competitive market has a large number of sellers of standardized products or commodities that consumers perceive as substitutable, such as grains, gold, meat, spices, or minerals. In such markets, price is usually set according to the laws of supply and demand. AACSB: Analytic Blooms: Understand Difficulty: 2 Medium Learning Objective: 13-05 Indicate the four types of competition. Topic: The Five Cs of Pricing 135. (p. 279) The commercial airline industry is considered what type of market?
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136. (p. 285) A reference price is: A. the actual price. B. the price against which buyers compare the actual sellin C. the manufacturer's cost. D. a cumulative quantity discount price. E. the external horizontal fixed price. Reference prices are prices against which actual prices can be evaluated. They can come from past experience, from competitive products, and from advertising, among other things. AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 13-08 List pricing strategies that have the potential to deceive customers. Topic: Legal and Ethical Aspects of Pricing
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137. (p. 285) In determining the price for his company's new pocket digital camera, Matt is assessing what consumers consider the regular or original price for similar cameras available in the market. Matt is assessing the influence of __________ on pricing strategy.
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