The Equation a Buyer Applies to Assess a Product's Value

question 105

Multiple Choice

The equation a buyer applies to assess a product's value is

• A) value = monetary price − customer benefits.
• B) value = customer costs − customer benefits.
• C) value = customer benefits − customer costs.
• D) value = customer benefits − monetary price.
• E) value = customer benefits − time and effort.

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Definitions:

Total Revenue

The total income a firm receives from the sale of its goods or services before any costs or expenses are subtracted.

Least Elastic

Refers to the degree of responsiveness or sensitivity of demand or supply to changes in prices, with the least elastic being the least responsive.

Straight-Line Demand

Straight-Line Demand refers to a demand curve that shows a constant rate of change in the quantity demanded as price changes.

Percentage of Income

A measure indicating what portion or ratio of one's income is allocated to a specific expenditure or category.