BA 370 CH 10 Question and answers
already passed 2025/2026
_____ are the costs associated with the operating and marketing expenses of a company. _____ are the
per-unit costs associated with the product. - correct answer ✔Fixed costs; Variable costs
The formula, Percent Change in Quantity Sold divided by Percent Change in Price, is used to calculate
which pricing concept? - correct answer ✔price elasticity
What is an added percentage or dollar amount added to the cost to determine its selling price? - correct
answer ✔markup
With _____ pricing, a variable rate is used for each customer, often based on a product's or a service's
demand. - correct answer ✔dynamic
True or False: Price skimming is when a marketer introduces a product into the market at an initially low
price then incrementally raises the price over time. - correct answer ✔false
_____ is packaging two or more goods or services together to sell them for a single packaged price. -
correct answer ✔bundle pricing
True or False: Dan Ariely describes a phenomenon he discovered called the third "decoy" option, which
says adding an inferior option will make the original product more attractive. - correct answer ✔true
True or False: With prestige pricing, elasticity in demand can be a positive number. This means when the
price goes up, instead of demand decreasing, demand actually increases. - correct answer ✔true
A company uses the _____ pricing strategy when it sells a popular item at an artificially low price. -
correct answer ✔loss leader
already passed 2025/2026
_____ are the costs associated with the operating and marketing expenses of a company. _____ are the
per-unit costs associated with the product. - correct answer ✔Fixed costs; Variable costs
The formula, Percent Change in Quantity Sold divided by Percent Change in Price, is used to calculate
which pricing concept? - correct answer ✔price elasticity
What is an added percentage or dollar amount added to the cost to determine its selling price? - correct
answer ✔markup
With _____ pricing, a variable rate is used for each customer, often based on a product's or a service's
demand. - correct answer ✔dynamic
True or False: Price skimming is when a marketer introduces a product into the market at an initially low
price then incrementally raises the price over time. - correct answer ✔false
_____ is packaging two or more goods or services together to sell them for a single packaged price. -
correct answer ✔bundle pricing
True or False: Dan Ariely describes a phenomenon he discovered called the third "decoy" option, which
says adding an inferior option will make the original product more attractive. - correct answer ✔true
True or False: With prestige pricing, elasticity in demand can be a positive number. This means when the
price goes up, instead of demand decreasing, demand actually increases. - correct answer ✔true
A company uses the _____ pricing strategy when it sells a popular item at an artificially low price. -
correct answer ✔loss leader
