Question 1

horizontal axis of a demand curve graph represents __________.

Accepted Answer

The horizontal axis on a demand curve graph represents the quantity demanded, or the quantity of a good or service that consumers are willing and able to buy at different prices.

Question 2

marketing director for a(n)__________ is most likely to believe the following statement,"The purpose of advertising is to increase demand for the product class."

Accepted Answer

The answer of marketing director for a(n)__________ is most likely...

Question 3

demand curve graph typically appears as

Accepted Answer

The demand curve typically appears as a diagonal line going from upper left to lower right demonstrating that as price goes down, demand goes up. This is because as the price of a good or service decreases, consumers are more likely to purchase it, leading to an increase in demand.

Question 4

Florida Power & Light,an electric power company,is the only source of electricity for consumers in most parts of the Florida panhandle.As a(n)__________,the company receives approval from the state utility commission for the rates it can charge.

Accepted Answer

Florida Power & Light is the only source of electricity for consumers, making it a sole provider in the market or a pure monopoly. As a result, the company receives approval from the state utility commission for the rates it can charge.

Question 5

of the following are demand factors EXCEPT:

Accepted Answer

The availability of similar products is a supply factor, not a demand factor. All other options (A, B, C) are demand factors that influence the level of demand for a product.

Question 6

Marketing executives must translate estimates of customer demand into estimates of

Accepted Answer

Marketing executives need to estimate customer demand to predict the revenues the firm expects to receive.

Question 7

Factors that determine consumers' willingness and ability to pay for products and services are referred to as

Accepted Answer

Demand factors are the factors that determine consumers' willingness and ability to pay for products and services. These factors include the consumer's income, preferences, needs, the price of the product or service, availability of substitutes, and demographic factors. Supply factors refer to the factors that impact the supply side of the market, such as the cost of producing a product, availability of resources, and competition. Affordability factors are related to a consumer's budget and may include income, expenses, and debt. Elasticity factors relate to how responsive consumers are to changes in price. Macro environmental factors refer to external factors that impact the market, such as political, economic, social, and technological factors.

Question 8

While consumer tastes and price and availability of similar products determine what consumers want to buy,consumer income determines

Accepted Answer

Consumer income determines what they can afford to buy. If they have a higher income, they may be able to afford more expensive products, while if their income is lower they may be limited to purchasing cheaper products.

Question 9

maximum quantity of products consumers will buy at given price is shown by

Accepted Answer

A demand curve shows the maximum quantity of products consumers will buy at a given price. It illustrates the relationship between the price of a product and the quantity of the product that consumers are willing and able to buy at that price. The demand curve slopes downward because as the price of a product increases, the quantity demanded of that product decreases, and vice versa.

Question 10

Apple iTunes has an advantage over Amazon as an online music supplier because

Accepted Answer

Apple iTunes has a larger market share and has tied its iTunes software to products like iPods, giving it an advantage over Amazon. This means that more people are already using iTunes and are familiar with how it works, making it a more popular choice for purchasing music online. Additionally, the fact that digital songs purchased on iTunes play only on iTunes-compatible devices like iPods further cements their advantage.

Question 11

competitive market circumstances are such that there is no price competition,no product differentiation,and the purpose of advertising is to increase demand for the product class,then __________ must exist in the industry.

Accepted Answer

A pure monopoly exists when there is only one seller in the market and no close substitutes for the product. In this case, the firm has the power to set the price and output level, and there is no price competition or product differentiation. The purpose of advertising in this case is to increase demand for the product class, which will benefit all firms in the industry.

Question 12

demand curve refers to a graph that relates

Accepted Answer

A demand curve shows the relationship between the price of a product and the quantity of the product that is demanded at that price. It represents the maximum number of units that will be sold at a given price. The curve slopes downwards from left to right, showing that as the price of a product increases, the quantity demanded decreases.

Question 13

Demand factors refer to

Accepted Answer

Demand factors refer to the consumers' willingness and ability to pay for goods and services. It includes factors such as income, consumer tastes and preferences, availability of substitutes, marketing and advertising, and economic conditions. The number of consumers who want to purchase a product or the number of consumers who can purchase a product are both aspects of demand, but they are not the only demand factors.

Question 14

increase profits on digital music downloads,Amazon has

Accepted Answer

Lowering prices is a common strategy for companies to attract more customers and increase profits. By offering lower prices than Apple iTunes, Amazon may be able to lure some of their customers to switch over to their platform. This could result in increased profits for Amazon overall.

Question 15

Basic to setting a product's price is the extent of __________.This information is used in estimating the revenues the firm expects to receive.

Accepted Answer

Customer demand is the basic factor in setting a product's price as it reflects the consumers' willingness to pay for the product. This information is crucial in estimating the revenues the firm expects to receive, and thus helps in determining the price to be charged for the product. Choice A, B, D, and E may also be considered as factors to some extent, but customer demand is the key factor.

Question 16

Walmart lies on the border between __________.

Accepted Answer

Walmart is a dominant player in the retail industry, but there are still several other competitors such as Target and Costco. Therefore, it lies on the border between monopolistic competition and oligopoly.

Question 17

vertical axis of a demand curve graph represents __________.

Accepted Answer

The vertical axis of a demand curve graph typically represents the price per unit of a good or service.

Question 18

estimating demand,price is not the only factor to be considered.Three other elements include consumer tastes,price and availability of similar products,and

Accepted Answer

Consumer income is a crucial factor in estimating demand because it determines the purchasing power of consumers. If the consumer income is high, demand for a product may increase even if its price is also high. On the other hand, if the consumer income is low, demand may decrease even if the price is low. Therefore, consumer income should be considered when estimating demand. While the other options listed may also be important factors, consumer income is arguably the most relevant to demand estimation.

Question 19

Walmart uses which pricing strategy that affects both customers and competitors?

Accepted Answer

Walmart uses the every day low pricing strategy which aims to maintain consistently low prices for its products. This affects both customers and competitors as Walmart's low prices may attract more customers, but may also put pressure on competitors to lower their own prices.

Question 20

manufacturing company that introduces a product must know or anticipate what specific price its __________ currently charge or may charge in the future.

Accepted Answer

Knowing or anticipating the specific prices charged by present and potential competitors is crucial for a manufacturing company when introducing a new product. This information helps in setting the right price for the product and remaining competitive in the market. Financial institutions, suppliers, unions, and regulators may not have a direct impact on the pricing strategy of the company for a new product launch.

Quiz 13: Building the Price Foundation