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A High-Low Pricing Strategy May Condition Consumers to Avoid Paying

question 151

True/False

A high-low pricing strategy may condition consumers to avoid paying the regular prices by waiting for sale prices.


Definitions:

Price Discrimination

A strategy in pricing where the same provider sells identical or nearly identical products or services for various prices across different markets or to distinct customer groups.

Production Functions

a mathematical relationship expressing the output that can be produced by a firm or economy from different combinations of factor inputs.

Resale of Goods

The act of selling previously purchased products, often used, to another party.

Price-Inelastic

Describes a situation where the demand for a product does not significantly change with a change in its price.

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