AGEC 4073 STUDY GUIDE TO TEST 1
Chapter 3-5
1. What role does elasticity play in the way price influences total revenue?
Hint if Ep > 1 , what will be the impact on Total Revenue if price rises or fall
Ep < 1 , what will be the impact on Total Revenue if price rises or fall
Ep = 1 , what will be the impact on Total Revenue if price rises or fall
2. Understand the role of prices in free market economy. Allocates resources in the
economy, indicates scarcity in economy, guides production & mktg decisions
3. Study the various utilities of marketing Form, Place, Time, Possession
4. Students should be able to define elasticity in their own words: responsiveness to qty
demanded to changes in prics or incomes
5. Students should be able to explain how they can use their understanding of
demand to explain consumer behavior in the market place.
6. Be able to explain demand & law of demand
7. Understand the purpose of a marketing plan: Purpose provides firms identity
8. Study the main marketing functions Exchange, Physical & Facilitating
9. What is the marketing approach or marketing concept & consumer sovereignty:
Firms activities to satisfy the consumer at a profit
10. Why is the marketing concept important to business Firms survival (profitability)
11. What are the two main steps of a Marketing Plan Purpose & Objectives
12. Understand the main areas of business environment that a Marketing Plan covers:
Mkt situation analysis, Opportunities analysis; Mktg mix analysis
13. Be able to calculate simple price, cross and income elasticity of a product.
%change in Qty/% change in price
14. What are inferior, complementary & substitute goods
15. Understand the key factors that cause change in demand and change in quantity
demand. Pdt price; income, popn, taste & pref; price of related pdts, seasonality
16. Understand Marketing Strategy or Marketing Mix. 4P’s
17. Understand the purpose of marketing and the conflicting needs that marketing
seeks to resolve: Resolve conflicting needs of producers & consumers
Producers seek to: Consumers seek to:
