1 Mark the following statements true or false.

1 Price is a key factor in marketing.

2 Human wants and prices are interrelated.

3 With high prices customers buy more products.

4 Customers always compare the prices.

5The substitution effect works when the prices fall.

6 The companies must consider their customers’ incomes.

7 Any business is based on the products that customers want but are not able to buy.

8 The art of marketing consists in making the customers believe that they really need the product.

9 Two activities are especially important for effective marketing.

10 One should conduct the market research before starting work in the market.

2 Answer the questions(in written form)

1 Why is it so important for marketing to control prices?

2 What does the inverse dependence between the demand and price mean?

3 What is the idea of the substitution effect?

4 What is your understanding of the income effect?

5 What happens if the prices fall/increase?

6 Why does any business needs marketing?

7 What is marketing focused on?

8 What helps producers to develop their long-term strategy?

9 What points are typically included into market research?

10 Why must market research never stop?

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