GB 350 Ch.19 Exam Questions and
Answers
Supply determinant of price - ANSWER-quantity of a product that will be offered to
the market by a supplier at various prices for a specific period.
How demand and supply establish price - ANSWER--price equilibrium
-elasticity of demand
price equilibrium - ANSWER-the price at which demand and supply are equal.
elasticity of demand - ANSWER-consumer's responsiveness or sensitivity to
changes in price.
Elasticity of demand - ANSWER--elastic demand
-inelastic demand
-unitary elasticity
elastic demand - ANSWER-consumers buy more or less of a product when the price
changes
inelastic demand - ANSWER-increase or decrease in price will not significantly affect
demand
unitary elasticity - ANSWER-an increase in sales exactly offsets a decrease in prices
so total revenue remains the same.
Elasticity of demand equation - ANSWER-% change in quantity demanded/%change
in $
Demand is elastic when: - ANSWER-Price goes down/revenue goes up
Price goes up/revenue goes down
Demand is inelastic when: - ANSWER-Price goes down/revenue goes down
Price goes up/revenue goes up
Unitary elasticity (E=1) - ANSWER-Price goes up or down/ revenue stays same
Yield mgmt systems - ANSWER--discounting early purchases
-limiting early sales at discounted prices
-overbooking capacity
-stimulate demand when its low
-maximize profits when demand is high
Answers
Supply determinant of price - ANSWER-quantity of a product that will be offered to
the market by a supplier at various prices for a specific period.
How demand and supply establish price - ANSWER--price equilibrium
-elasticity of demand
price equilibrium - ANSWER-the price at which demand and supply are equal.
elasticity of demand - ANSWER-consumer's responsiveness or sensitivity to
changes in price.
Elasticity of demand - ANSWER--elastic demand
-inelastic demand
-unitary elasticity
elastic demand - ANSWER-consumers buy more or less of a product when the price
changes
inelastic demand - ANSWER-increase or decrease in price will not significantly affect
demand
unitary elasticity - ANSWER-an increase in sales exactly offsets a decrease in prices
so total revenue remains the same.
Elasticity of demand equation - ANSWER-% change in quantity demanded/%change
in $
Demand is elastic when: - ANSWER-Price goes down/revenue goes up
Price goes up/revenue goes down
Demand is inelastic when: - ANSWER-Price goes down/revenue goes down
Price goes up/revenue goes up
Unitary elasticity (E=1) - ANSWER-Price goes up or down/ revenue stays same
Yield mgmt systems - ANSWER--discounting early purchases
-limiting early sales at discounted prices
-overbooking capacity
-stimulate demand when its low
-maximize profits when demand is high
