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:

Withholding Allowances

Allowances claimed on employment forms determining the amount of federal income tax withheld from a paycheck.

Federal Withholding

The portion of an employee's wages that is withheld by the employer for the purpose of paying federal income taxes.

Supplemental Wages

Additional compensation received beyond one's regular wages, such as bonuses, commissions, or overtime pay, often subject to different tax withholding rates.

FICA Taxes

Taxes levied on both employees and employers to fund Social Security and Medicare.