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Question 13 A Swiss watch company advertises its history of superior craftsmansh

ID: 1217194 • Letter: Q

Question

Question 13

A Swiss watch company advertises its history of superior craftsmanship. The company thinks that this will

a.

Make the demand for the product more elastic

b.

Make the customers more sensitive to the price

c.

Not impact the demand for their product

d.

None of the above

4 points

Question 15

You are the owner of an art supply store, selling both paint and paintbrushes. In order to maximize total sales you should

a.

Decrease the price on both the paint and the paintbrushes

b.

Decrease the price on the paint only

c.

Increase the price on both the paint and the paintbrushes

d.

Decrease the price on paintbrushes only

4 points

a.

Make the demand for the product more elastic

b.

Make the customers more sensitive to the price

c.

Not impact the demand for their product

d.

None of the above

Explanation / Answer

13) Option (B)-Price sensitivity is the degree to which the price of a product affects consumers purchasing behaviors. The degree of price sensitivity varies from product to product and from consumer to consumer.

15)Option(A)- paint and paint brushes both are complementary goods , the prices of complementary goods are tend to be negatively correlated, in order to increase the max sales both the prices of paint and paint brushes are to be decreased.


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