Puffery Involves

question 60

Multiple Choice

Puffery involves .

• A) offering a free item to a customer who buys an item at a regular price
• B) advertising one product at a low price to entice customers into the store and then switching their attention to a higher-priced product
• C) making an exaggerated recommendation in a sales talk to promote the product
• D) using factually wrong statements to promote a product

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of consumers increase, unlike normal goods for which demand increases with an increase in income.

Income Decrease

Income decrease refers to a reduction in the amount of money earned by an individual or received by a household, affecting their ability to spend and save.

Giffen Goods

A type of product that paradoxically experiences increased demand as its price rises, seemingly contrary to the basic law of demand due to the effect on consumption of essential goods.

Inferior Goods

Products whose demand decreases as the income of consumers increases, due to the preference for higher-quality substitutes.