Chapter 13: The Marketing Mix Price

1.

Multiple Choice

30 sec

1 pt

In a free market, prices are determined by:

supply and wants

demand and output

demand and supply

supply and needs.

2.

Multiple Choice

30 sec

1 pt

When the price of most products increases, the demand for these products will be likely to:

fall

increase

stay the same

increase and then remain constant.

3.

Multiple Choice

30 sec

1 pt

The demand for Coke is most likely to be affected by which of the following changes?

the price of Pepsi-Cola

the supply of Coca-Cola

the cost of producing Coca-Cola

an increase in incomes of people who do not buy Coca-Cola

4.

Multiple Choice

30 sec

1 pt

The price for a product rises 10%, product demand falls by a smaller proportion, which is true?

The supply of the product is inelastic.

Competitors have lowered their prices.

Demand for the product is inelastic.

Demand for the product is elastic.

5.

Multiple Choice

30 sec

1 pt

The price of a product rises by 5% and the market supply rises by 20%. Which is true?

Demand for the product is elastic.

Supply is inelastic.

Firms have been unable to increase output.

Supply is elastic.

6.

Multiple Choice

30 sec

1 pt

When demand and supply are equal in a free market, which of the following is true?

The price is at its equilibrium level.

Price skimming is being used.

Supply and demand are both elastic.

Cost-plus pricing is being used.

7.

Multiple Choice

30 sec

1 pt

A firm is most likely to adopt a low price (penetration) strategy for a product when:

sales are increasing rapidly

competitors have just raised their prices

the objective is to achieve a high market share

the firm wants to establish a luxury image for the product.

8.

Multiple Choice

30 sec

1 pt

The cost of making 1000 units is $500. What is the price if a profit mark-up of 50% is added?

$1

50 cents

$3

75 cents

9.

Multiple Choice

30 sec

1 pt

A firm aiming to create a luxury, quality clothes product image will use which pricing strategy

price penetration

price skimming

competitive pricing

cost-plus pricing.

10.

Multiple Choice

30 sec

1 pt

A shop has chairs that have been in stock for over a year. To sell them quickly it will use:

promotional pricing

price skimming

equilibrium price

11.

Multiple Choice

30 sec

1 pt

A firm's pricing decision made for one of its products will influence all the answers except:

sales of the product

sales revenue

profit made by the business

cost of producing the product.

12.

Multiple Choice

30 sec

1 pt

A firm sells a product for $2. The cost of making the product was $1.50. The profit mark-up is?

50%

25%

30%

33.3%.

13.

Multiple Choice

30 sec

1 pt

An oil company is keen to maintain market share. It is likely to use:

price skimming

competitive pricing

cost-plus pricing with a high mark-up

penetration pricing to start with and then price skimming.

14.

Multiple Choice

30 sec

1 pt

A supermarket buys in tins of soup for $2 each. It sells them for $3. The profit mark-up is:

100%

50%

25%

$3

15.

Multiple Choice

30 sec

1 pt

All the following factors will be considered by a restaurant when pricing its menu except:

the prices charged by local competitors

the cost of the food supplies

the type of market segment it is aiming to reach

the balance of payments deficit.

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