12 Questions
When demand is high and supply is low, what can a business do?
Command a higher price
What type of costs are not subject to change depending on the number of units sold?
Fixed costs
What is the main objective of each channel member in the channel of distribution?
To make a profit
What is the relationship between price and demand when demand is sensitive to changes in price?
As price increases, demand decreases
What is the primary factor that determines the price of a product?
The price customers are willing to pay
What is one of the objectives to consider when setting prices?
To obtain a target return on investment
What is the main advantage of adapting to technological changes in pricing strategy?
Giving an entrepreneur a competitive edge
What are the two main factors that affect the price of a product?
Costs and expenses, and supply and demand
How does the price of a product affect customer perception?
It creates an image in the minds of customers
What is the main characteristic of the growth stage in the product life cycle?
More competitors enter the marketplace
What is the main purpose of government regulations on pricing?
To be fair to customers and prevent unethical practices
What is the pricing strategy based on the cost per unit of measure?
Unit pricing
Learn about the various factors that influence the price of a product, including costs, supply and demand, consumer perceptions, and government regulations. Test your understanding of pricing strategies and market dynamics.
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