Carnival Cruise Lines increased the price of its seven-day cruise package by 20 percent recently. If demand for its cruises is negatively elastic, which of the following is the likely outcome of the increase in price?

• A. There will be no change in the number of cruises booked.
• B. The company's profit will decrease though its revenue will increase.
• C. The company's total revenue will increase.
• D. The company will see a decrease in total revenue.
• E. The company will see an increase in customer bookings.

Hermit, a fashion apparels retailer, recently slashed prices on its premium fashion label, Lau, by 40%. This resulted in a sharp rise in sales of Lau by 30%. This also directly impacted the sales of its lower-priced brand, Infinity, which saw sales reduced by 15%. What is the cross-price elasticity of demand between Lau and Infinity?

• A. 0.37
• B. 2
• C. 2.66
• D. 1.33
• E. 0.5

Which of the following pricing strategies is oriented toward customers?

• A. A strategy that prices products above that of competitors' offerings
• B. A strategy that is primarily aimed at adding value to a company's products or services
• C. A strategy that emulates competitors' pricing strategies
• D. A strategy that focuses on producing a specific return on investment
• E. A strategy that delivers quality products at lower prices and helps capture market share

Which of the following is a typical feature of large and sophisticated channel members?

• A. They prefer to delegate channel functions.
• B. They require several channels below them for distribution.
• C. They do not have many supply chain intermediaries.
• D. They have a lower profit markup than smaller firms.
• E. They do not use independent sales people.