1 .		If demand is elastic, a price decrease will result in ________. [Hint]   an increase in quantity demanded and a decrease in total revenue   a decrease in quantity demanded and an increase in total revenue   an increase in quantity demanded and an increase in total revenue.   a decrease in quantity demanded and a decrease in total revenue
2 .		The relationship between the prices charged, and the resulting demand (amount purchased at the various possible prices) constitutes a firm's ________ curve. [Hint]   supply   demand   equilibrium   competition
3 .		Under conditions of _______ competition, the market consists of many buyers and sellers trading in a uniform commodity. [Hint]   pure   monopolistic   oligopolistic   capitalistic
4 .		In nonregulated monopolies, companies are: [Hint]   free to price at what the market will take and most frequently do.   sometimes constrained in making pricing decisions due to fear of government regulation.   willing to charge very high prices, since they are not afraid of competition.   always charging the highest possible price.
5 .		Demand sets a(n): [Hint]   floor to the price that a company can charge for its product.   larger return on investment for a company's product.   ceiling to the price that a company can charge for its product.   smaller return on investment for a company's product.
6 .		In perceived value pricing: [Hint]   a high price set by the seller is used to appeal to several different market segments.   nonprice marketing mix variables are used to build up demand.   a low price is set by the seller to offset reduced application of other marketing mix variables.   a low price set by the seller is used to impart perceived value.
7 .		Which of the following is not one of the reasons offered for why the cost-plus approach to pricing is still popular? [Hint]   It simplifies pricing.   If all firms use this method, their prices tend to be similar and price competition is minimized.   Many people feel that the approach is fairer to both buyers and sellers.   The approach considers both demand and competition.
8 .		When a company faces intense competition or changing consumer wants, and at the same time suffers from overcapacity, it is most likely to adopt a ________ objective in its pricing strategy. [Hint]   survival   current profit maximization   market share leadership   product quality leadership
9 .		Which pricing method is being used when a firm competes for business and bases its price on expectations of how competitors will price rather than in relation to its own costs or demand? [Hint]   Cost-plus pricing   Value based pricing   Sealed bid pricing   Psychological pricing
10 .		Which of the following statements about the price elasticity of demand is true? [Hint]   Buyers are less price sensitive when the product they are buying is unique.   Buyers are less price sensitive when the product is high in quality, prestige, or exclusiveness.   Buyers are less price sensitive when substitute products are hard to find or when they cannot easily compare the quality of substitutes.   All of the above.
11 .		Today, the Internet has the promise of reversing the fixed pricing trend and takes us back to an era of Dynamic Pricing -- charging different prices depending on individual customers and situations. [Hint]  True  False
12 .		Generally speaking, the Average Fixed Cost will decrease (per unit) as the level of production increases. [Hint]  True  False
13 .		Under pure competition, the market consists of many buyers and sellers who trade over a range of prices rather than a single price. [Hint]  True  False
14 .		If demand is inelastic, an increase in the price will result in a decrease in demand and a decrease in total revenue. [Hint]  True  False
15 .		Buyers are less price sensitive when there is an abundance of substitute products. [Hint]  True  False
16 .		Whereas economic conditions can have a strong impact on a firm's pricing decisions, the government should be of no concern to pricing strategists. [Hint]  True  False
17 .		Break-even analysis and target profit pricing use buyers' perceptions of value, not costs, as the key to pricing. [Hint]  True  False
18 .		Using sealed-bid pricing, a firm bases its price on how it thinks competitors will price rather than its own costs or on demand. [Hint]  True  False
19 .		One reason some retailers have adopted Every Day Low Pricing (EDLP) is that constant sales and promotions are costly and have eroded customer confidence in the credibility of everyday shelf prices. [Hint]  True  False
20 .		The concept of Every Day Low Prices (EDLP) involves charging higher prices on an everyday basis, but running frequent promotions to lower prices temporarily on selected items. [Hint]  True  False
21 .		Discuss the common mistakes that many companies make when pricing their products and services in today's modern competitive environment. [Hint] To create paragraphs in your essay response, type <p> at the beginning of the paragraph, and </p> at the end.
22 .		Explain how the seller's pricing freedom varies with the different types of markets and competitive situations. [Hint] To create paragraphs in your essay response, type <p> at the beginning of the paragraph, and </p> at the end.