Q6. When deciding what price to charge customers, a firm may choose to charge different prices based on customers' a. Age

b. Willingness to pay

c. Location

d. All of the above

Q7.If advertising makes demand of a product more elastic, it makes sense for a firm to a. Decrease the price of the product

b. Increase the price of the product

c. Leave the price unchanged

d. None of the above

Use the following table for questions 50-57 Cooking Wok Value to home users Value to professional Chefs No-name brand $50 $60 High-end professional series $70 $100

Q8. If the groups are equal size and the firm can only set one price, how should the firm price the high-end wok? a. Price low and sell to both the users

b. Price high and sell only to the professional chefs

c. Price low and sell only to the home users

d. All of the above

Q9. For direct price discrimination to work, the firm a. Must be able to identify members of the low value group

b. Charge the low-value group lower prices than the rest

c. Prevent the low-value group from reselling their low priced goods to higher-valued group

d. All of the above

Q10. You own two different energy drink brands: "Blue Cow" and "600 minute energy." If you reduce the price on "Blue Cow", a. Sales of "Blue Cow" would increase, without any changes in sales for "600 minute energy."

b. Sales of both "Blue Cow" and "600 minute energy." would increase

c. Sales of "Blue Cow" would increase, but the sales of "600 minute energy" would be cannibalized

d. Neither "Blue Cow" nor "600 minute energy" would see an increase in sales.