Author Question: Mindy is selling soda and lemonade at the local university's baseball game. She prices the soda at 4 ... (Read 125 times)

gbarreiro · **on:** Jun 29, 2018

Mindy is selling soda and lemonade at the local university's baseball game. She prices the soda at 4 a bottle and lemonade at 7 each. These are generally much higher prices than people would normally pay. What is likely to happen to demand?
A) Demand will plummet and Mindy will receive a significant loss.
B) Mindy will be able to provide a greater supply of beverages than normal.
C) Demand will be high because people tend to forget to bring their own beverages.
D) People will be willing to pay to enhance their baseball game experience.
E) Demand will not be high, but the high margins will provide a profit.

Question 2

One of the biggest challenges of a market share pricing objective is that it oversimplifies the contribution of price to profits.

Indicate whether the statement is true or false