Southern Gardeners Have a Preconceived Idea on What They Will

question 124

Multiple Choice

Southern gardeners have a preconceived idea on what they will pay for pine bark mulch that they buy at their local gardening supply store to keep the weeds down in their gardens. If the price being charged is not within a narrow range that they feel is appropriate, they will make substitutions-newspaper, grass clippings, or some other kind of ground covering. When pricing pine bark mulch, a garden supply retailer should use:

• A)above-, at-, or below market pricing.
• B)customary pricing.
• C)loss-leader pricing.
• D)penetration pricing.

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Definitions:

Total Revenue

The total income received by a firm from its sales of goods or services, calculated as the quantity sold times the price per unit.

Price Lowered

A decrease in the cost of a good or service to consumers.

Price Elasticity

A measure of the responsiveness of quantity demanded or supplied of a good to a change in its price.

Quantity Demanded

The quantity of a good that consumers are willing and able to purchase at a given price over a specified period of time.