QUESTION 1 When demand is elastic, a price increase will total revenues. a. decrease b.increase c. decrease, then increase d. have no effect on QUESTION 2 Which of the following is an informal approach to pricing? a ingredient mark-up approach b.$1 per $1000 approach c. competition based approach d. bottom-up approach QUESTION 3 When the desired food cost percentage is 32%, the multiple used for determining prices using the ingredient mark- up approach is: a. 4.000 Ob.3.333 c. 3.125 d. 3.000 QUESTION 4 b. Which of the following statements about markup pricing is true a. When a markup approach is used, the resulting price should be based solely on the computed amount. Everything else being the same, the multiple for the ingredient markup approach to pricing will be smaller than the multiple for the prime ingredient markup approach. ce In the ingredient markup approach to pricing, the multiple is determined by dividing 1 by the difference of 1 and the desired ingredient cost percentage. d. With markup approaches to pricing, historical pricing strategies should be ignored