Question 1

What is the difference between a movement along a demand curve and a shift of a demand curve?

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Question 2

Price elasticity of demand measures how sensitive consumer demand and the firm's revenues are to changes in the product's price.Explain the difference between a product with elastic demand and a product with inelastic demand.

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Question 3

Step 1 of the price-setting process identifies pricing objectives and constraints.Describe the reasons these objectives may change and give examples of objectives a firm may set.

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Question 4

Describe a profit objective used by many Japanese manufacturing firms.

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Question 5

What are the six broad objectives that an organization may pursue that tie in directly to its pricing policies?

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Question 6

What is the difference between fixed costs and variable costs?

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Question 7

Explain why price elasticity is important to marketing managers.

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Question 8

List four key factors used to estimate demand.

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Question 9

Distinguish between elastic demand and inelastic demand.

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Question 10

Describe the types of competitive markets and give an example of each one.

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Question 11

What factors determine price elasticity of demand?

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Question 12

Marketing managers often use break-even analysis to analyze the relationship between total revenue and total cost to determine profitability at various levels of output.What is the break-even formula? Use the formula to calculate how many DVD players a dealer must sell if her fixed costs are $100,000,unit variable costs are $150,and the selling price is $200.

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Question 13

In the process of setting price,a marketer must first identify pricing objectives and constraints.Next,in Step 2,three specific estimates are necessary.What are they?

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Question 14

Describe the pricing constraints a firm is likely to face.

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Question 15

What are the six major steps involved in setting prices?

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Question 16

There are factors other than price that affect demand.What are they and how do they work?

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Question 17

Define marginal analysis.

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Quiz 13: Building the Price Foundation