Podcast
Questions and Answers
What does it indicate when the elasticity coefficient is greater than 1?
What does it indicate when the elasticity coefficient is greater than 1?
- Demand is perfectly inelastic.
- Demand is elastic. (correct)
- Demand is unitary elastic.
- Supply exceeds demand.
If demand is inelastic, what is the expected outcome of a price increase?
If demand is inelastic, what is the expected outcome of a price increase?
- Quantity demanded will decrease significantly.
- Quantity demanded will increase.
- Quantity demanded will remain unchanged.
- Quantity demanded will decrease only slightly. (correct)
Which scenario describes perfectly elastic demand?
Which scenario describes perfectly elastic demand?
- Quantity demanded remains the same regardless of price changes.
- A slight increase in price leads to a large decrease in quantity demanded. (correct)
- A price change has no impact on the quantity demanded.
- A large price increase results in no sales.
When demand is unitary elastic, what does this imply about the relationship between price and quantity demanded?
When demand is unitary elastic, what does this imply about the relationship between price and quantity demanded?
What happens to prices when supply exceeds demand in a market?
What happens to prices when supply exceeds demand in a market?
What is the primary factor influencing the cost-based pricing method?
What is the primary factor influencing the cost-based pricing method?
In the cost markup formula, what is represented by the variable 'Mark-up%'?
In the cost markup formula, what is represented by the variable 'Mark-up%'?
Which pricing strategy would be most appropriate for a company selling a unique, patented drug?
Which pricing strategy would be most appropriate for a company selling a unique, patented drug?
Which of the following factors does NOT influence a cost-based pricing approach?
Which of the following factors does NOT influence a cost-based pricing approach?
What does the term 'Price Death Spiral' refer to in pricing strategy?
What does the term 'Price Death Spiral' refer to in pricing strategy?
What is the formula for calculating markup percentage?
What is the formula for calculating markup percentage?
Which pricing strategy is characterized by starting with desired profit to set product prices?
Which pricing strategy is characterized by starting with desired profit to set product prices?
Which of the following statements accurately describes price setters?
Which of the following statements accurately describes price setters?
In the target costing method, what is the target cost dependent on?
In the target costing method, what is the target cost dependent on?
How does traditional pricing differ from target costing?
How does traditional pricing differ from target costing?
What does the absorption cost include in the context of markup cost basis?
What does the absorption cost include in the context of markup cost basis?
Which of the following best describes a price taker?
Which of the following best describes a price taker?
What is the purpose of cost-plus pricing?
What is the purpose of cost-plus pricing?
What is the formula for calculating the price when using the price maker approach?
What is the formula for calculating the price when using the price maker approach?
Why do retailers commonly use the Variable Cost Method?
Why do retailers commonly use the Variable Cost Method?
Which pricing method involves setting prices based on competitors' prices?
Which pricing method involves setting prices based on competitors' prices?
In which scenario would a company most likely employ the Total Cost or Full Cost Method?
In which scenario would a company most likely employ the Total Cost or Full Cost Method?
What does the term 'death spiral' refer to?
What does the term 'death spiral' refer to?
What distinguishes Cost plus target rate of return pricing from Cost plus pricing?
What distinguishes Cost plus target rate of return pricing from Cost plus pricing?
How is the absorption cost calculated in the price maker approach?
How is the absorption cost calculated in the price maker approach?
What is the outcome of using a price taker approach?
What is the outcome of using a price taker approach?
