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Home / Questions / There is an old saying, "If you have to ask the price of a yacht, you cannot afford it." P

There is an old saying, "If you have to ask the price of a yacht, you cannot afford it." P

There is an old saying, "If you have to ask the price of a yacht, you cannot afford it." Products like yachts are most likely to be associated with

 

A.cross-shopping.

B.competitive parity pricing.

C.target return value.

D.prestige pricing.

E.break-even point pricing.

53._________________ measures consumers' sensitivity to price changes.

 

A.Cross-price elasticity of demand

B.Price elasticity of demand

C.Income elasticity of demand

D.Competitive profit elasticity of demand

E.Inelastic demand price parity

54.For which of the following is demand likely to be least sensitive to price increases?

 

A.spring break vacations

B.a specific brand of cereal

C.prescription drugs

D.theater tickets

E.restaurant meals

55.For which of the following is demand likely to be most sensitive to price increases?

 

A.prescription drugs

B.college tuition for last-semester seniors

C.electricity

D.hospital care

E.a specific brand of soft drink

56.A study found that, among addicted smokers, a 10 percent increase in the price of cigarettes resulted in a 2 percent decrease in quantity demanded. For these consumers, cigarettes have a(n) ________________ price elasticity demand.

 

A.elastic

B.inelastic

C.cross-price

D.income effect

E.substitution effect

57.If a 1 percent decrease in price results in more than a 1 percent increase in quantity demand, demand is

 

A.cross-price elastic.

B.price inelastic.

C.price elastic.

D.status quo elasticity.

E.derived demand inelastic.

58.Assume the demand for electricity, a necessity with few substitutes, is -0.2. If the electric company raised its rates by 10 percent, we would expect

 

A.a 10 percent decrease in quantity demanded.

B.a 2 percent increase in quantity demanded.

C.a 10 percent increase in quantity demanded.

D.a 2 percent decrease in quantity demanded.

E.a 5 percent decrease in quantity demanded.

59.If a 1 percent decrease in price results in less than a 1 percent increase in the quantity demanded, demand is

 

A.cross-price elastic.

B.price inelastic.

C.price elastic.

D.status quo elasticity.

E.derived demand inelastic.

60.Barry customizes Harley-Davidson motorcycles. No two cycles are alike. He notices that very few customers even ask the price of his motorcycles before they decide to purchase them. Demand for his motorcycles is probably

 

A.price sensitive.

B.price elastic.

C.price inelastic.

D.income elastic.

E.cross-price elastic.

Dec 14 2019 View more View Less

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