UNT MKTG 3650 Thompson Exam3
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Price elasticity of demand refers to the:
1. Responsiveness of quantity demanded to price changes.
2. Range of prices for a product category offered by competing firms.
3. The effect a new competitor has on total industry sales.
4. Willingness of consumers to postpone buying a particular product during periods of
excess demand.
5. Willingness of consumers to buy a particular product during periods of excess supply.
- Answer- Responsiveness of quantity demanded to price changes
When a seller attempts to employ promotion to shift the demand curve for its product to
the right, such efforts represent:
1. price competition
2. price fixing.
3. non-price competition
4. market control
5. economic diversification - Answer- non-price competition
True/False:
Assuming the law of demand holds true for a specific demand curve, high prices are not
likely to be profitable for the seller because too few units will be sold to cover the firms
total fixed costs. - Answer- True -- when prices are high, units demanded tend to be low
when the demand curve is downward sloping. Per unit profit margins are very high
because of the high price, but enough units generally cannot be sold to cover the firm's
fixed costs i.e. to break even.
Humphrey Studio sells reproductions of European antiques. Last year sales were
disappointing. The studio owner decided to increase the price of each item by about
25%. The next year there was a 20% increase in units sold. The studio apparently
experienced:
1. Profit programming.
2. Expected price effects.
,3. Inverse demand.
4. The law of demand.
5. None of the above. - Answer- Inverse demand.
_________ is the ratio of perceived benefits to price and any other incurred costs.
1. Supply.
2. Target return.
3. Value.
4. Demand.
5. Utility. - Answer- Value.
A manufacturer could try to defend itself against charges of price discrimination under
the Robinson-Patman Act by claiming that:
1. any price differences were to "meet competition in good faith."
2. the price differences did not injure competition.
3. the price differences were justified on the basis of cost differences.
4. the products were not of "like grade and quality."
5. All of the above are possible defenses against price discrimination charges. -
Answer- All of the above are possible defenses against price discrimination charges.
Which of the following is least likely to cause problems when employing historical data
to estimate demands curves?
1. Competitors experimented with multiple price changes during the time frame under
analysis.
2. A consumer rights advocacy group mounted a major campaign against the company
and its products during the time under analysis.
3. The seller introduced several new products that were considered to be category
extensions during the time in question.
4. Price controls were imposed on the industry by the Federal government during the
period in which the pricing data were collected.
5. The seller made several major changes to its promotion program during the time in
question. - Answer- The seller introduced several new products that were considered to
be category extensions during the time in question.
Which method for estimating demand curves is least appropriate for the marketer of a
new product.
1. Using test market data.
2. Using managerial judgement.
3. Using buy-response data.
4. Using historical ratios - Answer- Using historical ratios
, Larry and Alan are college students. Last summer, to earn money for their college
tuition, they operated a snack booth at Panama City Beach, Florida for 3 months. They
sold soft drinks, chips, crackers, and candy bars. A month before they were planning to
open, Larry found a location that rented for $400 a month and a small refrigerator unit
which they rented for $50 per month. Alan found distributors for the food products as
well as for the paper products that they would need. Alan also purchased a business
license for $100 and bought 3-month's worth of liability insurance for $150. 20. The
cups, straws, napkins, and extra sales people needed to staff the stand are all
examples of:
1. Fixed costs
2. Variable costs.
3. Average costs.
4. Marginal costs.
5. Break even points. - Answer- Variable costs.
When production stops (i.e. no units produced), ____________________becomes zero.
1. Total fixed costs.
2. Marginal costs.
3. Total costs.
4. Fixed production costs.
5. variable costs of production. - Answer- variable costs of production.
Larry and Alan are college students. Last summer, to earn money for their college
tuition, they operated a snack booth at Panama City Beach, Florida for 3 months. They
sold soft drinks, chips, crackers, and candy bars. A month before they were planning to
open, Larry found a location that rented for $400 a month and a small refrigerator unit
which they rented for $50 per month. Alan found distributors for the food products as
well as for the paper products that they would need. Alan also purchased a business
license for $100 and bought 3-month's worth of liability insurance for $150. The
business license, rental fees, and insurance are all examples of:
1. Fixed Costs.
2. Variable costs.
3. Average costs.
4. Break even points.
5. Marginal costs. - Answer- Fixed Costs.
Assume that you are estimating the demand curve for a product using buy-response
data and have collected the following via a survey:
Price % Who Will Buy
5.00 1%
4.75 10%
4.50 25%
Newest 2025/2026 With Complete
Questions And Correct Answers
|Already Graded A+||Brand New
Version!
Price elasticity of demand refers to the:
1. Responsiveness of quantity demanded to price changes.
2. Range of prices for a product category offered by competing firms.
3. The effect a new competitor has on total industry sales.
4. Willingness of consumers to postpone buying a particular product during periods of
excess demand.
5. Willingness of consumers to buy a particular product during periods of excess supply.
- Answer- Responsiveness of quantity demanded to price changes
When a seller attempts to employ promotion to shift the demand curve for its product to
the right, such efforts represent:
1. price competition
2. price fixing.
3. non-price competition
4. market control
5. economic diversification - Answer- non-price competition
True/False:
Assuming the law of demand holds true for a specific demand curve, high prices are not
likely to be profitable for the seller because too few units will be sold to cover the firms
total fixed costs. - Answer- True -- when prices are high, units demanded tend to be low
when the demand curve is downward sloping. Per unit profit margins are very high
because of the high price, but enough units generally cannot be sold to cover the firm's
fixed costs i.e. to break even.
Humphrey Studio sells reproductions of European antiques. Last year sales were
disappointing. The studio owner decided to increase the price of each item by about
25%. The next year there was a 20% increase in units sold. The studio apparently
experienced:
1. Profit programming.
2. Expected price effects.
,3. Inverse demand.
4. The law of demand.
5. None of the above. - Answer- Inverse demand.
_________ is the ratio of perceived benefits to price and any other incurred costs.
1. Supply.
2. Target return.
3. Value.
4. Demand.
5. Utility. - Answer- Value.
A manufacturer could try to defend itself against charges of price discrimination under
the Robinson-Patman Act by claiming that:
1. any price differences were to "meet competition in good faith."
2. the price differences did not injure competition.
3. the price differences were justified on the basis of cost differences.
4. the products were not of "like grade and quality."
5. All of the above are possible defenses against price discrimination charges. -
Answer- All of the above are possible defenses against price discrimination charges.
Which of the following is least likely to cause problems when employing historical data
to estimate demands curves?
1. Competitors experimented with multiple price changes during the time frame under
analysis.
2. A consumer rights advocacy group mounted a major campaign against the company
and its products during the time under analysis.
3. The seller introduced several new products that were considered to be category
extensions during the time in question.
4. Price controls were imposed on the industry by the Federal government during the
period in which the pricing data were collected.
5. The seller made several major changes to its promotion program during the time in
question. - Answer- The seller introduced several new products that were considered to
be category extensions during the time in question.
Which method for estimating demand curves is least appropriate for the marketer of a
new product.
1. Using test market data.
2. Using managerial judgement.
3. Using buy-response data.
4. Using historical ratios - Answer- Using historical ratios
, Larry and Alan are college students. Last summer, to earn money for their college
tuition, they operated a snack booth at Panama City Beach, Florida for 3 months. They
sold soft drinks, chips, crackers, and candy bars. A month before they were planning to
open, Larry found a location that rented for $400 a month and a small refrigerator unit
which they rented for $50 per month. Alan found distributors for the food products as
well as for the paper products that they would need. Alan also purchased a business
license for $100 and bought 3-month's worth of liability insurance for $150. 20. The
cups, straws, napkins, and extra sales people needed to staff the stand are all
examples of:
1. Fixed costs
2. Variable costs.
3. Average costs.
4. Marginal costs.
5. Break even points. - Answer- Variable costs.
When production stops (i.e. no units produced), ____________________becomes zero.
1. Total fixed costs.
2. Marginal costs.
3. Total costs.
4. Fixed production costs.
5. variable costs of production. - Answer- variable costs of production.
Larry and Alan are college students. Last summer, to earn money for their college
tuition, they operated a snack booth at Panama City Beach, Florida for 3 months. They
sold soft drinks, chips, crackers, and candy bars. A month before they were planning to
open, Larry found a location that rented for $400 a month and a small refrigerator unit
which they rented for $50 per month. Alan found distributors for the food products as
well as for the paper products that they would need. Alan also purchased a business
license for $100 and bought 3-month's worth of liability insurance for $150. The
business license, rental fees, and insurance are all examples of:
1. Fixed Costs.
2. Variable costs.
3. Average costs.
4. Break even points.
5. Marginal costs. - Answer- Fixed Costs.
Assume that you are estimating the demand curve for a product using buy-response
data and have collected the following via a survey:
Price % Who Will Buy
5.00 1%
4.75 10%
4.50 25%
