Dynamic Pricing Allows a Website to Use the Personal Information

question 200

Multiple Choice

Dynamic pricing allows a website to use the personal information collected on a customer, such as income or location, to individualize the price of a product for each customer. Economists consider this type of pricing an example of:

• A) consumer sovereignty.
• B) producer sovereignty.
• C) price discrimination.
• D) price gouging.

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Definitions:

Nominal Income

The amount of money earned in current dollars, without adjustment for inflation or purchasing power.

Aggregate Demand Curve

A curve that shows the total spending on goods and services at each price level within an economy.

Autonomous Investment

Investments in an economy that are not influenced by current income levels but are determined by factors like technological changes or policy decisions.

Aggregate Expenditure Curve

A graphical representation that shows the relationship between total spending (consumption, investment, government spending, and net exports) and the level of national income.