Q1 You are discussing product
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Get it written →Q1 You are discussing product pricing scenarios with the CEO of your company. He wants to pursue a percentage price change across all the firm’s products in order to increase gross sales revenue. You inform him that the firm is facing an elastic demand curve for all its products.
Based on this information, which of the following actions do you recommend taking in order to achieve the gross sales revenue increase the CEO desires?
a. Reduce variable costs by ten percent.
b.Increase unit prices by ten percent across the board.
c.Increase unit prices by twenty percent across the board.
d.Leave unit prices as is.
e.Decrease unit prices by ten percent across the board.
Q2 Which of the following statements is true about pricing objectives and pricing decisions?
a. Premium prices are more likely to appear in advertising messages.
b.Objectives to increase market share or raise cash require different pricing strategies.
c.Buyers do not equate higher prices with higher quality.
d.Only variable costs should factor into pricing decisions.
e.The firm should never sell products below cost.
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