the percentage change in quantity demanded is greater than the percentage change in price
A situation in which an increase or a decrease in price will not significantly affect demand for the product
a situation in which total revenue remains the same when prices change
The Sherman Act
act which helped to eliminate monopolies in the United States
The Robinson-Patman Act
Was called the Chain Store Act. It was to protect independent retailers or wholesalers from unfair discrimination by chain stores.
A strategy of selling a new product or service at a high price that innovators and early adopters are willing to pay in order to obtain it; after the high-price market segment becomes saturated and sales begin to slow down, the firm generally lowers the price to capture (or skim) the next most price sensitive segment.
Pricing strategy in which the seller charges a low price on a new product to discourage competition and gain market share.
setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for its effort and risk
a pricing strategy based on what all the other competitors are doing. The price can be set at, above, or below competitors' prices.
pricing that is determined by how much customers are willing to pay for a product or service
offering the same price to all customers who purchase products under essentially the same conditions and in the same quantities
A pricing policy that allows customers to bargain for price
reductions for transportation and other costs related to the physical distance between buyer and seller
a strategy for recognizing the relative cost of a product based on the cost on standard unit such as an ounce or gram
charging a high price to help promote a high-quality image
setting prices a few dollars or cents under an even number
the practice of offering a product line with several items at specific price points
a price tactic in which a product is sold near or even below cost in the hope that shoppers will buy other items once they are in the store
amount by which original price is increased
a method of determining what sales volume must be reached before total revenue equals total costs