A Pricing Objective That Seeks a Specific Level of Profit

question 134

Multiple Choice

A pricing objective that seeks a specific level of profit is a:

• A) profit maximization objective.
• B) value objective.
• C) sales-oriented objective.
• D) target return objective.
• E) status quo objective.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price in a given time period.

Quantity Supplied

The aggregate quantity of a product or service that suppliers are prepared and capable of selling at a particular price during a defined time frame.

Shortage

A condition where the quantity demanded of a good exceeds the quantity supplied at the market price.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded in the market.