Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Chapter 12, Problem 3MC
To determine
Acquiring substitute good.
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Students have asked these similar questions
The price elasticity of demand for a product tends to be greater the
Select one:
A. fewer close substitutes for it there are.
B. more close substitutes for it there are.
C. shorter the time span being considered.
D. more necessary the product becomes.
In this method a price reduction is given to
customers based on the quantity of their
purchase.
a. Trade
b. Seasonal discount
c. Quantity discount
d. Quality discount
Economics
Which price adjustment strategy is based on how
a customer's perception of a product is influenced
by its price?
a. By-product pricing
b. Captive product pricing
c. Promotional pricing
d. Psychological pricing
e. International pricing
Chapter 12 Solutions
Managerial Economics: A Problem Solving Approach
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Similar questions
- 35. The primary determinant of the price elasticity of supply of a good is: A. its degree of substitutability. B. the time frame for purchase of the good. C. fraction of a company's costs spent on the good. D. the amount of time suppliers have to respond to a price change.arrow_forwardA good will have a more inelastic demand Select one: a. if it is considered a necessity. b. the greater the availability of close substitutes. c. the longer the period of time. d. the narrower the definition of the market.arrow_forwardPlease no written by hand solution Which of the following factors does not affect the price elasticity of demand? A. Share of the good in the budget B. Number of consumers in the market C. Availability of substitutes D. Market level vs. Brand level definitionarrow_forward
- A good tends to have a small price elasticity ofdemand ifa. the good is a necessity.b. there are many close substitutes.c. the market is narrowly defined.d. the long-run response is being measuredarrow_forwardThe supply of a good will be more elastic, the a. more the good is considered a luxury b. broader is the definition of the market for the good. c. larger the number of close substitutes for the good. d. longer the time period being considered.arrow_forwardChoose the letter of the correct answer. ____1. It is designed to measure the response of quantity demanded when price changes. A. Elasticity C. Elastic B. Elasticity of Demand D. Elasticity of Supply ____2. It is the ratio or percentage in quantity to a percentage change in price along the given supply curve. A. Elasticity of Demand C. Price Elasticity of Supply B. Elasticity of Supply D. Price Elasticity of Demand ____3. It focuses on the analysis of the behavior of individual economic agents. A. Economics C. Macroeconomics B. Macro aspect D. Microeconomics ____4. It refers to the number of goods and services that a consumer is willing able to purchase. A. Concept of Supply C. Elasticity of Demand B. Concept of Demand D. Elasticity of Supply ____5. It refers to the number of goods and services that a firm is willing and able to offer for sale. A.…arrow_forward
- Is there something unique or distinctive about the product or service that separates it from substitutes and competitors?arrow_forwardMultiple Choice question if in the short run the demand for transit by train is inelastic and in the long run the demand is elastic, then a price: a.increase will increase total revenue in the short run but decrease total revenue in the long run. b.decrease will decrease total revenue in the short run and decrease total revenue in the long run. c. increase will decrease total revenue in the short run but increase total revenue in the long run. d.decrease will increase total revenue in the short run but decrease total revenue in the long run.arrow_forward23. The smaller the coefficient of price elasticity of demand for a product, the: A. smaller the resulting price change for an increase in supply. B. more rapid the rate at which the marginal utility of that product diminishes. C. less competitive will be the industry supplying that product. D. smaller the resulting quantity change for a decrease in supply.arrow_forward
- Price elasticity of supply in the short run and long termarrow_forwardThe demand is more price-elastic: A. If the product is a large part of the consumer's budget. B. If the product has very few substitutes. C. If the product is a necessity. D. In the long run.arrow_forwardFor a good with the following demand: Quantity Demanded Price 6000 $20 14,000 $15 (a) Calculate the price elasticity of demand using the Midpoint Method. (b) Is the demand for this good considered elastic or inelastic? (c) Do you think it is more likely that the average consumer will consider this good a necessity or a luxury? How did you determine your answer? (d) If sellers' production costs rise, will they be able to pass these higher costs onto the buyers in the form of higher prices? Explain.arrow_forward
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