Marketing 3

A movie theater charges $5 per ticket and averages 300 customers each night. If prices are raised to $7 per ticket, the theater estimates that average nightly ticket sales will be $1,750. What is the percentage change in the average number of customers the theater has each night?

17%

A movie theater charges $5 per ticket and averages 300 customers each night. If prices are raised to $7 per ticket, the theater estimates that average nightly ticket sales will be $1,750. How many customers is the theater expecting to average each night with the new ticket price?

250

A movie theater charges $5 per ticket and averages 300 customers each night. If prices are raised to $7 per ticket, the theater estimates that average nightly ticket sales will be $1,750. What is the percentage change in ticket prices?

40%

A movie theater charges $5 per ticket and averages 300 customers each night. If prices are raised to $7 per ticket, the theater estimates that average nightly ticket sales will be $1,750. What is the elasticity of demand in this situation?

42.5%

A bank that stays open in the evening is offering place utility to its customers.

False

A restaurant in downtown Chicago is a good example of an oligopoly.

False

Even if they work together, businesses in an oligopoly have little control over price

False

If a very large amount of product is available, consumers will usually place a higher value on it.

False

Individuals who purchase products and services to satisfy needs are producers.

False

The cost of resources is the same no matter what economic system a society uses.

False

The law of supply states that when the price of a product is increased, less will be supplied; when the price is decreased, more will be supplied.

False

Unlimited consumer needs and wants, combined with unlimited resources, produce scarcity.

False

When competition is intense- with many businesses offering the same types of products or services- there are increased opportunities for a business to succeed than when there is little competition.

False

Marketers are most concerned with

Microeconomics

Which of the following is not a characteristic of a private enterprise economy?

The government controls exchange activities between producers and consumers.

If a business operating as a monopoly is unregulated by the government, it can charge any price it chooses. The consumer either pays the price set by the business or goes without.

True

If a need or want is particularly important or strong, a consumer might be willing to spend more money to satisfy it.

True

Products that provide great satisfaction have a higher economic utility, whereas those providing less satisfaction have a lower utility.

True

The United States has many characteristics of a free economy.

True

The demand curve for businesses in monopolistic competition falls somewhere between that of pure competition and monopoly.

True

The point where supply and demand for a product or service are equal is called market price.

True

Economic resources are classified as a natural resources, ______, equipment, and labor

capital

In this kind of economy, the government owns and controls important resources and makes the decisions about what will be produced and consumed.

command

A relationship between the quantity of a product consumers are willing and able to purchase and the price is called

demand

This type of economic utility results from changes in the tangible parts of a product or service.

form utility

All of the consumers who will purchase a particular product or service comprise an economic____

market

In a ______ economy, some goods and services are provided by the government and some by private enterprise.

mixed

What type of situation exists in a market in which many firms compete with products that are somewhat different?

monopolistic competition

A______ is a kind of market in which one supplier offers a unique product.

monopoly

The profit _____ is the use of resources to obtain the greatest profit.

motive

If there is a very large supply of a product, consumers will usually

place a lower value on it

________ utility results from the affordability of the product or service.

possession

When a business offers to sell products to customers on credit, what kind of utility is it offering customers?

possession utility

Supply is a relationship between the quantity of a product that producers are willing and able to provide and the ____

price

The basic economic problem is

scarcity

Unlimited wants and needs combined with limited resources equals

scarcity

Which of the following factors usually would not influence what and how many products or services a business will produce in a market economy?

the desire to provide employment for as many people as possible

Economic ______ is the amount of satisfaction a consumer receives from the consumption of a particular product or service.

utility

___ is an individual view of the worth of a product or service.

value