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MGT 103 - Quiz 3 Ch. 13-16 and podcasts Questions and Answers (100% Pass)
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MGT 103 - Quiz 3 Ch. 13-16 and podcasts Questions and Answers (100% Pass)
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1|Page | © copyright 2024/2025 | Grade A+MGT 103 - Quiz 3 Ch. 13-16 and
podcasts Questions and Answers
(100% Pass)
Importance of Price to Marketers
✓ - Price is the only marketing mix variable that can be changed quickly
✓ --Price is related to total revenue and profit
✓ --Profit = Total Revenue - Total Costs
✓ --Profit = (Price x Quantity Sold) - Total Costs
✓ Price has a psychological impact on customers. A high or low price
can emphasize the quality of a product.
Profit=
✓ total revenue - total cost
✓ (price X quantity sold) - total cost
Price
Master01 | October, 2024/2025 | Latest update
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✓ - The assignment of value, or the amount the consumer must exchange
to receive the offering
✓ --Includes money, effort, time, favors, votes, or anything else that has
value to the other party
✓ --Opportunity costs must also be considered
✓ (Generally a monetary price)
For most products, there is an inverse relationship between price and
demand. How would you get the increase in demand without changing
price?
✓ Change the quantity w out changing the price, change another one
of the Ps, change promotion, how its being marketed, who it is
targeting and how to change that, can change place, do we wanna
change how we distribute it?
Inelastic Demand
Master01 | October, 2024/2025 | Latest update
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✓ - A change in price results in a little or no change
✓ in quantity demanded (change price form P1 to P2 the demand
decreases by a small amount, not elastic, doesnt move) (i.e gas, when
the price of gas goes up people buy it anyways even if they arent
happy, tuition fees)
✓ - A situation in which an increase or a decrease in price will not
significantly affect demand for the product
Elastic Demand
✓ - A change in price causes a great (opposite) change
✓ in quantity demanded (increase price same amount but quantity
changes LARGE amount)
✓ - A situation in which consumer demand is sensitive to changes in price
How would you classify the following in terms of price elasticity?
GASOLINE
✓ inelastic
How would you classify the following in terms of price elasticity?
MOVIE TICKETS
Master01 | October, 2024/2025 | Latest update
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✓ elastic
How would you classify the following in terms of price elasticity?
AIR TRAVEL
✓ depends
How would you classify the following in terms of price elasticity?
COFFEE
✓ Depends, if you buy coffee cause u love coffee people will buy aways
but if you are buying for its purpose chose something cheaper
Types of Costs
✓ fixed and variable
fixed costs
✓ Fixed costs don't change with the number of units produced, whether
it's 100 or 10,000. Thus the average fixed cost per unit will always
decrease as the number of units produced increases (Fixed Costs =
expenses that do not vary as a function of output volume (even if no
production activity, these remain))
Master01 | October, 2024/2025 | Latest update
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