1. Explain the relationship of price and quality. How does prestige pricing come into play when a marketer is making a pricing decision?
2. Inside Traders opens a brokerage account and purchases 1,500 shares of Energy Innovations at $370 per share. They borrow $300,000 to pay for the stock. The interest rate on the loan is 9%. If the maintenance margin requirement is 25%, how low can the stock price go in one year before a margin call would be made?