Question

1) When the price of 12-can Coca Cola is decreased from $5 to $3.33, the quantity sold increases from 250,000 to 470,000. If so, which one of the following would be true?

Group of answer choices

a. Market skimming pricing strategy will work best given the price elasticity of demand is inelastic

b. Market skimming pricing strategy will work best given the price elasticity of demand is elastic

c. Market penetration pricing strategy will work best given the price elasticity of demand is inelastic

d. Market penetration pricing strategy will work best given the price elasticity of demand is elastic

2) If decreasing the price of coffee will cause a decrease in the price of tea, this is an example of positive price elasticity.

Group of answer choices

a. True

b. False

3) Market Skimming pricing is not used when:

Group of answer choices

a. There are high barriers of entry into the market

b. The product is innovative

c. Demand is elastic

d. The market consists of segments

4) The slope of the demand curve for a good with perfect price elasticity is____________.

Group of answer choices

a. infinity

b. zero

c. 1

d. - 1

5) According to the table below, which restaurant attribute is the most important for the respondent?

Group of answer choices

a. Cuisine

b. Price Range

c. Distance

d. All of the above

Answer 1