Luring customers in w/ low prices that aren't offered

Flexible Pricing Policy-

allows customers to negotiate prices within a price range

separates goods into cost categories showing quality levels

the amount added to the price to cover overhead and profit

cost of running a business and its merchandise

The business cycle- (aka the economic cycle)

refers to the ups and downs of the economy

all customers pay the same price for the same product

The point at which supply & demand meet

When related businesses conspire to charge high prices

Price Discrimination- occurs when one

gets charged a higher price for an item than someone else

When price goes up, supply goes up

When price goes up, demand goes down

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The Economics of Supply and Demand - Chapter 8 SEM

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Questions 24

Answers

1
Bait & Switch-
Changing the price of a product due to low sales
Luring customers in w/ low prices that aren't offered
Selling broken items
Switching sale prices to the product's original price
2
Flexible Pricing Policy-
allows retailers to negotiate prices within a price range
allows customers to negotiate prices within a price range
allows customers to use promotions on their purchases
allows inflation and deflation in the economy
3
Involves reducing the price of a product below the store's cost to create more customer traffic
loss-leader pricing
price lines
promotional pricing strategies
special event promotion
4
Price lines-
the highest price an item is allowed to be sold at
the price range of a product
the lowest price an item is allowed to be sold at
separates goods into cost categories showing quality levels
5
Depending on the severity of the contraction it may be referred to as a recession or depression
True
False
6
Scarcity-
Lack of demand
Lack of resources
Lack of consumers
Lack of Price
7
Markup-
the amount added to the price to cover overhead and profit
when the price increases due to increased demand
when supply decreases and price goes up
when inflation occurs
8
Operating Expenses-
cost of training employees
cost of maintaining a brand image and consumer confidence
cost of running a business and its merchandise
cost of employees' salaries
9
The lowest point of a contraction period is called a
recession
trough
10
The business cycle- (aka the economic cycle)
refers to the economic state of a business from start to end
is an optional thing a business has to go through
refers to the ups and downs of the economy
is another word for inflation as it means prices increase
11
A period of moderate demand
Moderate demand
Shoulder period
Off-season
Moderation
12
One-Price Policy
allows customers to use only 1 promotion on their purchases
allows retailers to sell products they can afford
retailers may only sell an item for a certain price
all customers pay the same price for the same product
13
When retailers charge higher than average prices for merchandise and target customers
Prestige Pricing
Psychological Pricing
Volume Pricing
Extreme Pricing
14
Equilibrium-
The point at which supply & demand meet
When revenue equals sales
The point at which supply & price meet
The point at which demand & quantity meet
15
When businesses pass on their savings onto customers
Volume Pricing
Prestige Pricing
Extreme Pricing
Psychological Pricing
16
Price Fixing-
Applying discounts on purchases
When related businesses conspire to charge high prices
When businesses meet to sabotage other businesses' pricing
Creating fair prices
17
The downside of the business cycle refers to as
Contraction
Recession
Decline
Trough
18
Price Discrimination- occurs when one
complains about a price
refuses to buy something he/she promised to buy
gets charged a higher price for an item than someone else
steals an item from a business
19
When retailers are creating an illusion for customers
Psychological Pricing
Extreme Pricing
Volume Pricing
Prestige Pricing
20
the upside of the business cycle is referred to as
recovery
peak
expansion
growth
21
Helps reduce the cost of the new item
rebates
loss-leader pricing
trade-in allowance
quantity discounts
22
The highest point in the business cycle is called the peak
False
True
23
Law of Supply-
When demand goes up, price goes up
When price goes up, supply goes up
When price goes down, supply goes up
When price goes up, demand goes down
24
Law of Demand-
When supply goes up, demand goes down
When price goes up, demand goes down
When supply goes up, demand goes up
When price goes up, demand goes up

The Economics of Supply and Demand - Chapter 8 SEM Flashcards | StudBud