A Hamburger Stand near the Local Mall Sells Hamburgers for $3.99

question 22

Multiple Choice

A hamburger stand near the local mall sells hamburgers for $3.99, drinks for $1.99, and fries for $1.49, while a gourmet restaurant nearby sells entrees for $20, $30, and $45. Both of these restaurants are using ________.

• A) demand-based pricing
• B) cost-based pricing
• C) psychological pricing
• D) prestige pricing
• E) penetration pricing

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Definitions:

Ozone

A molecule composed of three oxygen atoms, significant for its role in absorbing harmful ultraviolet radiation in the Earth's stratosphere.

Smog

A type of air pollution characterized by a mixture of smoke and fog, often resulting from industrial emissions and vehicle exhaust.

Stratospheric Ozone

A layer of ozone molecules located in the Earth's stratosphere that absorbs and protects living organisms from the harmful effects of the sun's ultraviolet radiation.

Ultraviolet Radiation

Electromagnetic radiation with a wavelength shorter than that of visible light, but longer than X-rays, which can have effects on the skin such as sunburns and vitamin D synthesis.