ID: A 38. The price sensitivity of buyers is measured by a. the law of demand. c
ID: 384051 • Letter: I
Question
ID: A 38. The price sensitivity of buyers is measured by a. the law of demand. c. subjective pricing. b. the price elasticity of demand. d. vertical pricing. 39. "Fair trade" is synonymous with which of these terms? a. Unit pricing C. Resale price maintenance b. Horizontal price fixing d. Price discrimination 40. The Robinson-Patman Act was initially enacted to protect a small retailers from the unfair business practices of large manufacturers, b. final consumers from horizontal price fixing by wholesalers. C. final consumers from horizontal price fixing by retailers. d. small retailers from unfair price competition by large chains. Which of these laws prohibits large firms from cutting below their costs in selected geographic areas so as to climinate small, local competitors? a. Loss-leader pricing C. Unit pricing b. Predatory pricing d. Selling against the brand 42. Unit pricing enables consumers to a. compare prices that are attached to each item's label with the prices rung up at the cash register. compare prices per quantity for different-sized containers. C. decide whether dealer brands or manufacturer brands are better values in terms of price and quality comparisons. d. determine price savings if they purchase advertised specials. 43. With which of these practices do firms have no intention of selling an advertised item? a. Bait-and-switch advertising C. Loss-leader advertising b. Selling against the brand d. Predatory pricing 44. When an industry becomes deregulated, the pricing environment shifts from-controlled to L-controlled. a. market, government C, government, company b. government, market d. company, market _45. A firm with inelastic consumer demand and patent protection should utilize a. a penetration price strategy. c. subjective pricing. b. a skinuming price strategy. d. market-driven pricing. L 46. The lowest price a fim can charge and still attain its profit goal becomes its a customary price, c. price ceiling. b. flexible price. d. price floor, D.Explanation / Answer
38. b. price elasticity of demand
Price elasticity is measured as the change in demand as proportion of change in price.
39. c. Resale price maintenance
Fair trade is also termed as resale price maintenance or vertical price fixing. In this practice, manufacturers may limit the distributors' freedom to determine prices by setting limits on maximum or minimum retail price.
40. d. small retailers from unfair price competition by large chains
41. b. Predatory pricing