Case 1:  Suppose that a camera manufacturer has two potentia…

Case 1:  Suppose that a camera manufacturer has two potential products The XD-Pro camera costing $450 to manufacture A XD-S camera also costing $450 to manufacture Professional photographers value the XD-Pro at $1150 while amateur photographers value the XD-Pro at $900.  Professional photographers value the XD-S camera at $850 while amateur photographers value the XD-S at $700.  Suppose that the firm expects 1000 professionals and 1000 amateurs in the market for these cameras.   Q: Which of the following is true about this case?

Case 3:   Suppose that your firm has designed a way to test…

Case 3:   Suppose that your firm has designed a way to test a new pricing structure.  A total of 100 retail locations were randomly divided into two groups.  Sales were measured for all locations for a week.  Then, all of the retail locations in the first group adopted the new pricing structure.  Finally, sales were measured again for all locations.   Q: During the course of the above, a competitor changed there pricing.  Which of the following is true?

Suppose that a consumer believes that an Ipad is worth $450…

Suppose that a consumer believes that an Ipad is worth $450 and an Apple Pen is worth $90. The Apple Store is willing to sell both at a price of $500.   As consumers see surplus as a gain, which of the following combinations of prices totaling $500 is likely to generate the greatest consumer satisfaction?

Case 3:   Suppose that your firm has designed a way to test…

Case 3:   Suppose that your firm has designed a way to test a new pricing structure.  A total of 100 retail locations were randomly divided into two groups.  Sales were measured for all locations for a week.  Then, all of the retail locations in the first group adopted the new pricing structure.  Finally, sales were measured again for all locations.   Q: During the course of the above, a competitor changed there pricing.  What type of extraneous effect would this be called?