The Practice of Setting Prices Highest When the Quantity Demanded

question 141

Multiple Choice

The practice of setting prices highest when the quantity demanded for the product approaches capacity is:

• A) predatory pricing.
• B) target pricing.
• C) peak-load pricing.
• D) price fixing.

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Definitions:

Heart Attack

A medical emergency that occurs when the flow of blood to the heart is blocked, causing heart muscle damage or death.

Normal Good

A type of good for which demand increases when consumer income rises, and decreases when consumer income decreases.

Rental Price

The cost associated with renting a property, such as an apartment or a car.

Normal Good

A type of good for which demand increases as the income of individuals or the economy increases.