# Question Answer
1 The ____of prices can vary due to many
2 If you purchase a certain amount of
products from the store, you will receive
3 There are many___considerations to
consider when setting the price for a
4 He wanted his new product to be ___so he
built it with quality materials.
5 There is a ___ that higher priced items are
6 Sometimes ___ from your pricing plan will
have to be made based on changing market
7 You should try to set the price of your
product at the exact level the market will
8 She negotiated a(n)___arrangement with
the manufacturer so she would be the only
dealer selling the item.
9 The price of baseball trading cards
is/are___because the price changes with
10 It makes no sense to ____ over a price for
an item that is inelastic.
Word Bank for questions 1-10 above
Perception sensitivity elastic bear enduring ethical haggle
Deviations exclusive cumulative
Questions 11-20 are true and false
11 Psychological pricing, prestige pricing, and
price lining are all promotional pricing
12 Odd/even pricing uses odd prices (39.95) to
suggest higher quality andeven prices
($40.00) to suggest bargains.
13 Price skimming involves charging a high initial
price for new products to recover cost or
maximize profits as soon as possible.
14 Penetration pricing attempts to build sales
volume by charging lower initial prices.
15 Break-even point occurs when sales equal
costs minus the expenses of making or
distributing a product.
16 Markup is the amount added to the cost of
an item to cover expenses and ensure profit.
17 Markdown means a business lowers its prices
by a certain percentage.
18 A discount is a reduction in price to the
19 Special market circumstances such as a heat
wve provide an opportunity for permanent
increases in prices for some businesses.
20 Changes in price strategy should be made as
a result of periodic systematic review.