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The many names for price

The many names for price. Tuition The price paid for….. Education Rent The price paid for….. An apartment Premium The price paid for….. Car insurance Fee The price paid for….. Dental & medical work Dues The price paid for….. Membership in an organization

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The many names for price

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  1. The many names for price Tuition The price paid for….. Education Rent The price paid for….. An apartment Premium The price paid for….. Car insurance Fee The price paid for….. Dental & medical work Dues The price paid for….. Membership in an organization Fare The price paid for….. Transportation Wage The price paid for….. Hourly workers Interest The price paid for….. Money

  2. Consumer perceptions of value for money spent on products and services Low Value High Value Medium Value • Poultry • Fruits & • Vegetables • Meat • Appliances • Fish • Cable TV • Lawyers fees • Movies & Theatre • Medical Services • Financial • Services • Air Fares • Fast food • Telephone service • Life Insurance • Home repairs • Shoes • Restaurant meals • Prescription drugs • Men’s apparel • Carpets • Auto repairs • College Tuition • Auto Insurance • U.S. Postage

  3. The Profit Equation Profit = Total Revenue – Total Cost Total Revenue = Unit Price X Quantity Sold Total Cost = Fixed Cost + Variable Cost

  4. Price elasticity of demand Elastic demand (E>1); Percentage change in quantity demanded is greater than the percentage change in price. Unitary demand (E=1); Percentage change in quantity demanded is equal to percentage change in price. Price (P) Inelastic demand (E<1); Percentage change in quantity demanded is less than percentage change in price Quantity (Q)

  5. Break-Even Analysis Chart Total Revenue Total Cost (fixed and variable) Profit Variable Cost Loss Fixed Cost

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