Sales Forecasting and Pricing Policy Quiz

Microeconomics

Lowers short run profit

Inflation, unemployment

<p>18 year low of 3.5%</p> Signup and view all the answers

<p>Controllable, Uncontrollable</p> Signup and view all the answers

<p>How will buyers of your product respond to price changes?</p> Signup and view all the answers

<p>Percentage change in quantity demanded divided by percentage change in price.</p> Signup and view all the answers

<p>Revenue decreases with lower prices if demand is price-inelastic.</p> Signup and view all the answers

<p>Income-elasticity determines how demand changes with customers' incomes.</p> Signup and view all the answers

<p>Advertising elasticity is important in deciding on advertising budgets.</p> Signup and view all the answers

<ol> <li>Whether the good is a luxury or necessity</li> <li>Availability of close substitutes</li> <li>Share of income spent on the good</li> </ol> Signup and view all the answers

<p>Necessities have zero elasticity, luxuries have zero at low income levels then high, and inferior goods have negative elasticity.</p> Signup and view all the answers

<p>e= (dQ/dP) * (P/Q)</p> Signup and view all the answers

<p>Price discrimination is charging consumers different prices for the same product. If demand is elastic, revenue is gained by reducing price, but if demand is inelastic, revenue is gained by raising price.</p> Signup and view all the answers

<p>Firms can use advertising and other promotional techniques to reduce elasticity.</p> Signup and view all the answers

<p>Income elasticity shows demand sensitivity to changes in income. Normal goods have positive income elasticity, while inferior goods have negative income elasticity.</p> Signup and view all the answers

<p>0 &lt; εI &lt; 1</p> Signup and view all the answers

<p>Price elasticity of supply is calculated as the percentage change in quantity supplied divided by the percentage change in price.</p> Signup and view all the answers

<p>Improve product quality or move into new product lines with higher income elasticity</p> Signup and view all the answers

<p>Price sensitivity of buyers and bargaining power of buyers</p> Signup and view all the answers

<p>Purchases of product as % of total purchases, Product differences and brand identity, Impact of product on the quality of the buyers’ product or service, Customers’ own profitability, Decision-makers’ incentives</p> Signup and view all the answers

<p>By considering factors such as product differences, brand identity, impact on the quality of buyers’ products or services, customers’ own profitability, and decision-makers’ incentives</p> Signup and view all the answers

<p>Price sensitivity of buyers</p> Signup and view all the answers

<p>Understand usefulness of economics in describing managerial behavior.</p> Signup and view all the answers

<p>To improve managerial decisions.</p> Signup and view all the answers

<p>To understand the importance of business in society.</p> Signup and view all the answers

<p>Demand Elasticity, Supply, Market structures, Macroeconomics, International Economics, etc.</p> Signup and view all the answers

<p>The application of economic analysis to managerial decision-making.</p> Signup and view all the answers

<p>To achieve a production target at the lowest possible cost.</p> Signup and view all the answers