chapter 9

Question 1

4 approaches for finding an approximate price level for goods

Answer 1

1-demand orientated
2-cost orientated
3-profit orientated
4-competition orientated

Question 2

demand

Answer 2

maximum number of products consumers will buy at a given price

Question 3

price elasticity

Answer 3

how sensitive demand is to its price

Question 4

setting final price steps (4)

Answer 4

1-set approximate price level

2-setting the list or quoted price

3-special adjustment to the prices through discounts, etc

4-monitor and adjust prices

Question 5

standard markup

Answer 5

marking up price slowly over time

Question 6

cost plus pricing

Answer 6

adding a specified percentage level to the products unit costs

Question 7

customary

Answer 7

selling through vending machines.
ex. McDonalds self order

Question 8

loss leader

Answer 8

setting common products at low prices so consumers are influenced to buy the regular priced items as well

Question 9

movement along the demand curve

Answer 9

peoples willingness to pay/demand changes

Question 10

shift of demand curve

Answer 10

change in taste

Question 11

break even analysis

Answer 11

when profit = revenue