Customers purchase prestige products or services for

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63. Customers purchase prestige products or services for the status of owning the products, not just for the functionality. These products may not follow a typical demand curve if: A. people don't know the price. B. raising the price makes more people want to own one. C. similar products become less expensive. D. the marketer can demonstrate that functionality is more E. value is removed from the equation. 64. There is an old saying, "If you have to ask the price of a yacht, you cannot afford it." Products like yachts are most likely to be associated with: 65. __________ measures consumers' sensitivity to price changes.
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66. For which of the following is demand likely to be least sensitive to price increases? 67. For which of the following is demand likely to be most sensitive to price increases? A. Prescriptio n drugs. B. College tuition for last-semester seniors. C. Electricity. D. Hospital care. E. A specific brand of soft drink. 68. Price elasticity of demand is the: 69. A study found that, among addicted smokers, a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded. For these consumers, cigarettes have a(n) __________ price elasticity demand.
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70. If a 1 percent decrease in price results in more than a 1 percent increase in quantity demand, demand is: 71. Near the end of the summer season, Sergio still has a large inventory of bathing suits. He needs to sell them rather than holding them over till next season, because colors and styles often change. He plans to offer them at 30 percent off the retail price. Sergio hopes that demand for bathing suits at the end of the season is: A. cross- price elastic. B. price inelastic. C. price elastic. D. status quo elastic. E. derived demand inelastic.
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Christopher Reinemann
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