econ part of comm

Question 1

Price Elastic

Answer 1

refers to the impact of price on the buyer’s decision to buy or not to buy the product

Question 2

Price Inelastic

Answer 2

when prices do not matter, customers will buy the product regardless of price

Question 3

Cyclicality

Answer 3

deals with the overall state of an economy

Question 4

Cyclical Product

Answer 4

when the state of the economy affects the demand for the product such as automobiles, housing, and designer clothes

Question 5

Non-cyclical Product

Answer 5

state of the economy does not affect the demand for the product such as food and prescription drugs

Question 6

Counter-cyclical Products

Answer 6

Bad times can help the demand for products such as burgers and chicken

Question 7

Seasonality

Answer 7

deals with the time of year a product is produced and sold

Question 8

Seasonal Products

Answer 8

products affected by seasons of the year

Question 9

Non-seasonal Products

Answer 9

products that are not affected by seasonality

Question 10

Perceived absolute value of the product

Answer 10

customers create a perception of a product’s value based on perceived benefits from owning the product

Question 11

Perceived relative value of the product

Answer 11

given customers perceive a product has absolute value, customers then compare the benefits and costs of that product with the benefits and costs of alternative or competing products